“We are delighted to present Smart Wires, Inc. – dedicated to providing grid optimization solutions for transmission organizations worldwide.” The May Silicon Review team interviewed Gregg Rotenberg, CEO and President of Smart Wires, Inc. (one of the private equity investments made by 3×5 Partners, LLC, an Arnerich Massena Approved Manager and affiliate), showcasing the work the company is doing to upgrade utilities globally, making it possible to maximize the efficiency of our existing energy grid. Read more
After strong financial market returns in 2017, many endowments and foundations have continued to increase their effective spending rates since 2015. According to the 2017 National Association of College and University Business Officers (NACUBO) annual study, average spending rates among university and college endowments rose in fiscal 2017 to 4.4% from 4.3% in fiscal year 2016. Institutions with endowment assets of more than $1 billion accounted for the largest increase in spending rates with a spending rate of 4.8% (compared with 4.4% in 2016), with smaller endowments rising slightly.
By Bryan Shipley, CFA, CAIA, Co-CIO
Passive investment management: A passively managed fund seeks to match the performance of an index by replicating the index’s holdings. Passive investment management delivers market returns, and typically has lower fees than active management.
Over the past decade, investor preference for passive investing has dramatically altered equity markets. This huge movement toward index investments (inflows to passive investments of more than $200 billion annually in 2016 and 2017) may have repercussions on equities’ pricing and valuation, the implications of which should be considered by investors. While we understand there are valid reasons many investors have shifted their preference to more index-based solutions, it would also be naïve not to be aware of the unintended consequences of this shift. Read more
Behavioral economics tells us that people feel the pain of a loss more deeply than they feel the pleasure of a gain. For this reason, risk aversion is common among investors, as we try to avoid that pain. But there is a mathematical reason painful losses feel more impactful than gains; the return percentage needed to make up for a loss can be significantly greater than the loss itself. Read more
After hitting an all-time low in 2017, investor expectations of stock market volatility have started to rise this year. While these market jitters are at least partly due to eventful headlines, there’s another, more fundamental explanation that may be playing a role: The Federal Reserve’s decision to reduce its bond holdings may be contributing to increased volatility in the stock market. Read more
Over the last 20 years, the number of publicly traded companies in the U.S. has decreased by approximately 50%. The market has become highly concentrated, leaving investors access to the same, limited pool of investments. For this reason, many investors are turning to private markets in order to increase the diversification of their portfolios. If constructed properly, having exposure to private equity may enhance a portfolio’s return while reducing volatility.
Seventy-six percent of the 174 U.S. initial public offerings (IPOs) in 2017 were of companies with earnings less than zero. While it’s not unusual for unprofitable companies to go public, this is the highest level we’ve seen since 2000, and equal to the second-highest year of 1999.
“Are you ready for this? It could be a game-changer…” starts the accompanying article to Rachael Ray’s March 19, 2018 show featuring tech guru Katie Linendoll and Zero Mass Water’s Source Hydropanels. Zero Mass Water, one of the private equity investments made by 3×5 Partners, LLC, an Arnerich Massena Approved Manager, has made recent appearances with its innovative technology in Forbes Magazine, Inc. Magazine, and on This Old House. Now, celebrity chef and talk show host Rachael Ray learns about the company’s incredible machine on her show Rachael.