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There are a few potential misalignment of interests between managers and investors of evergreen funds. We've already seen what happens when investors, who seem to always want to sell at the same time, come into conflict with a fund that owns assets meant to be held long term. And while evergreen funds aren't necessarily more expensive than closed-end counterparts, the devil is always in the details.
Read MoreProjecting the trajectory of interest rates is about as arbitrary as how the Fed (FOMC) decided to make 2% its official inflation target. How and why did the U.S. central bank set that target? Could it change? Click here to read more about the history of the Fed and it’s monetary policy decisions.
Read MoreSuccessful Venture Capital requires exposure to the statistical outliers. This typically means allocating more capital to funds that are smaller, more concentrated, and may be run by managers with limited track records. As a result, VC may not be suitable for every investor. Click here to read more about how we view the asset class and approach portfolio construction for patient capital.
Read MoreHigher for longer remains the topic du jour when discussing Fed policy. But how much higher? And how much longer? For clients who are currently sitting in the “safety” of cash, click here to learn why we think bonds, relative to cash, may make more sense both as a recession resilient asset and as a long-term investment holding.
Read MoreThe illiquidity premium has nothing to do with holding period. Rather, it exists in areas where capital is less abundant. Lately, however, there’s no shortage of cash flowing into private investments as retail and institutional investors alike have upped their deployment into venture capital and private equity. Fortunately, it’s not too late to find opportunities, as long as investors’ remain judicious and follow a disciplined process.
Read MoreIn normal down markets, it’s usually easy to see why diversification matters. But in the current environment, shaped by rapidly rising interest rates, we’re seeing both stocks and bonds underperform. No matter how many historical precedents argue against the inclination, it’s easy to want to uproot one’s current portfolio. Read more to understand why that’s generally not a good idea.
Read MoreWhen evaluating our investments, behavioral finance offers insight into why we often stick with the status quo. Even when underperforming, many investors, including sophisticated ones, tend to stick with strategies that are too risky, too expensive, or too often try to time the market. Read our latest blog post about how the Endowment Effect and self-efficacy affect everyday investment decisions.
Read MoreThe behavioral biases that cause us to ignore overwhelming odds and fill out March Madness brackets are innate. They’re also the same traits that lead to illogical investment decisions. Learn more about how the Affect Heuristic and the Illusion of Validity influence our investment decisions in the same way they make us cheer on underdogs, and root for teams we may have never followed before.
Read MoreWe’re not in the business of making forecasts at SineCera Capital. Rather, we’re focused on building a risk-balanced portfolio that we think serves our clients well without relying upon any market predictions. Understandably, we were quite happy with how our All-Weather Core portfolio performed in 2020, but knew that the law of averages could come into play in 2021. So how to our risk-balanced portfolio do? Better than we initially expected.
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