Author: Amy Paterson

In financial markets, the impact of bad news can vary. Often, it’s straightforwardly negative, and other times, paradoxically, it becomes good news. Currently, the markets are eagerly awaiting an economic slowdown that could reduce job and wage growth. This hope is driven by the belief that the Federal Reserve will then be able to initiate an easing cycle, rewarding investors for looking beyond a potential recession towards brighter economic prospects. This is the market’s version of anticipating future opportunities, much like “skating to where the puck will be. “Historically, during economic downturns, this anticipatory behavior pushes earnings multiples higher as current earnings hit their lowest point. This contrasts with robust economic conditions where earnings are at their peak and earnings multiples are closer to their lows. If markets accurately predict shifts in interest rates and earnings, this pattern makes sense. However, as we’ve witnessed this year, markets can sometimes prematurely discount changing earnings or future interest rate levels, necessitating corrections back to previous levels when conditions revert, as occurred this fall.

This is an excerpt from a longer commentary. Please Download the PDF to read the entire 4th Quarter 2023 CIO Commentary.

Brendon Parry, the Managing Director of Private Markets at TIFF Investment Management, offers valuable insights into the importance of public market equivalents (PMEs) and their pivotal role in assessing the performance and inherent risks associated with investing in private equity versus public markets.

Read the full article here.

The materials are being provided for informational purposes only and constitute neither an offer to sell nor a solicitation of an offer to buy securities. These materials also do not constitute an offer or advertisement of TIFF’s investment advisory services or investment, legal or tax advice. Opinions expressed herein are those of TIFF and are not a recommendation to buy or sell any securities.

These materials may contain forward-looking statements relating to future events. In some cases, you can identify forward-looking statements by terminology such as “may,” “will,” “should,” “expect,” “plan,” “intend,” “anticipate,” “believe,” “estimate,” “predict,” “potential,” or “continue,” the negative of such terms or other comparable terminology. Although TIFF believes the expectations reflected in the forward-looking statements are reasonable, future results cannot be guaranteed.

Discover how cultural institutions such as museums, symphonies, and historical societies are redefining their operating models post-pandemic. Matt Hoehn, Co-Head of Custom Asset Allocation of TIFF’s Member Strategy team, discusses the unique challenges these institutions face, particularly in balancing portfolios and meeting their missions.

Watch here: TIFF’s Strategy Director Spotlight Series: Arts & Cultural Institutions

The materials are being provided for informational purposes only and constitute neither an offer to sell nor a solicitation of an offer to buy securities. These materials also do not constitute investment, legal or tax advice. Opinions expressed herein are those of TIFF and are not a recommendation to buy or sell any securities.

In the recent episode of the Global Investment Leaders podcast, Kane Brenan, CEO of TIFF, engages in conversation with Chas Burkhart, CEO of Rosemont. The conversation centers around TIFF’s unique standing in the OCIO space, Kane’s leadership approach, the company’s evolving investment strategies, and the shift towards becoming an employee-owned public benefit limited liability company. To listen to the full podcast, click the play button in the box below.

This podcast episode is available on Apple Podcasts, Spotify, and Google Podcasts.

The materials are being provided for informational purposes only and constitute neither an offer to sell nor a solicitation of an offer to buy securities. These materials also do not constitute investment, legal or tax advice. Opinions expressed herein are those of TIFF and are not a recommendation to buy or sell any securities.