The last decade has seen tremendous growth in Outsourced CIO (“OCIO”) assets, from just $100 billion globally in 2007 to over $2 trillion today. However, the term “OCIO” is broad, at best. We have identified four key areas of differentiation among the OCIO industry. Within each area, there is a wide spectrum of offerings. This Makena Insight acts as a guide to navigating each area of differentiation. Understanding the breadth of offerings and how to assess them will help focus an institution’s OCIO search.
In order to provide more regular and timely insights around our approach to the Public Equity, Hedge Funds, and Fixed Income asset classes, Makena is introducing a new semi-annual Marketables Investor Letter. This first edition outlines the implications of 2020’s market actions and reviews Makena’s approach to active management in Public Equity.
Cryptocurrency and blockchain technology have the potential to upend the financial system, the internet, and the very notion of a corporation. But does the hype around this rapidly expanding technology translate to practical investment themes? The latest Makena Insight outlines the multiple functions of blockchain technology as they relate to a well-balanced venture capital portfolio.
By integrating ESG factors into our investment activities, we believe we can materially enhance financial and operating outcomes. Makena’s 2020 ESG Report examines our philosophy and process around ESG integration, and reviews the evolution of our approach over time.
Market drawdowns throw portfolios out of balance and force investors to make difficult decisions around rebalancing. With COVID-19 as a backdrop, Makena’s latest insight examines the equity risk premium (“ERP”) through historical downturns as a guide for investors rebalancing into risk assets.
Makena’s Mid-Year Investor Letter provides a recap of the first six months of 2020, including market context and how Makena relied on its core investment beliefs to navigate the volatility. The letter also compares and contrasts “quality” and “value” as investors try to discern the true worth of a company beyond its tangible assets.
The coronavirus is a serious global event which we continue to monitor closely. Its impact on global markets is fluid, but we remain confident in our portfolio and its long-term orientation. Protecting our greatest asset – our people – is a top priority.