“Apples & Oranges” explores valuation differences between US stocks (S&P 500) and developed non-US stocks (EAFE) to see if the latter is as cheap as it first appears.
Markets trade in cycles and, as most of you know, it is presently our view is that we are entering a challenging environment for risk assets. With that said, we…
The concept of “cost of capital” is not just something financial analysts pay attention to. We also think it is useful and relevant for families to consider as they design…
Our clients—like many investors—perceive that equity long/short hedge funds have, on average, not done a very good job of either hedging market risk or beating broad passive equity indices following…
President Biden’s proposed tax changes for corporations and wealthy individuals when he was a candidate are nearly identical to those recently proposed by his administration. This white paper (written when…
Many investors are flummoxed when it comes to investing in China. On the one hand, it is one of the largest investment markets in the world. On the other hand,…
The last couple of months have been extremely eventful for all of us. First and foremost, we hope that you and your families continue to be well and that you…
Socially responsible investing is a fast-evolving area of interest for wealthy families. It can come in many forms and there is a fair degree of complexity involved for families trying…
What are some common strategies used to optimize after-tax returns and exactly how valuable are they to a client’s portfolio? Is tax-loss harvesting more valuable than after-tax portfolio design? How…
How concerned should you be about market liquidity? What sectors of the markets would be most affected in a liquidity crisis and how might such a crisis begin? Is contagion…
Since the Financial Crisis, investor confidence in their advisors has plummeted. Clients are wondering exactly what it is that advisors are doing for them and how to measure how well…
As tax rates on high income taxpayers have risen – and are expected to continue to rise – families have begun to dust off a long-neglected tax shelter: investing via…
Once an investor decides to allocate capital to private equity, the first question is: “How should I go about it?” Properly structured, private equity can be the most rewarding sector…
Currently a $36 billion industry and growing, impact investing is increasingly significant in the investment marketplace. However, confusion still exists in our industry about what impact investing really is and…
Despite the fact that over the past decade most long-only active equity managers have failed to produce attractive returns (after taxes, fees and inflation), investors continue to hire and hold…
Secondary investments in private equity can be an attractive addition to primary private equity investments. They offer broad diversification across vintage years, industries, geographies, managers and investment strategies. Generally, capital…
Many members of wealthy families have a complicated relationship with their wealth, and this is often especially the case with young adults. This paper examines the issues faced by wealthy…
Most investors are well aware of the exceptional track record compiled by Yale University under the leadership of CIO David Swensen. But we suspect that far fewer investors are familiar…
There is some uncertainty surrounding the future of long-term and short-term capital gains tax rates, especially given the fact that the Presidential election is fast approaching and the expiration of…
Most investors are well aware of the exceptional track record compiled by Yale University under the leadership of CIO David Swensen. But we suspect that far fewer investors are familiar…
Investing on the basis of fundamentals has long been a cornerstone for prudent investors. However, the rash of extreme geopolitical events over the past several years has tried investors’ patience,…
The financial crisis that began almost five years ago is still with us and we are still dominated by the events unfolding in Europe. What are some of the root…
Investors strive to act prudently and to generate good risk-adjusted returns. But what happens when these two objectives are in conflict? In this white paper Greycourt discusses the conditions under…
This paper examines gold’s history, discusses the myths and facts about gold and considers the reasons (both irrational and rational) why investors buy gold in the first place. Download the…
Over the past decade, and accelerating rapidly in the last few years, the so-called “outsourced Chief Investment Officer” model for delivering financial advice has grown very rapidly. In the experience…
In White Paper No. 48, we recommend that families who use trusts (or who are considering establishing trusts) evaluate the advantages of “unbundling” the activities that have historically been bundled…
We recognize that many investors may not be familiar with real estate as a core part of an investment portfolio, and so we are also enclosing White Paper No. 47A…
White Paper No. 47 describes the current real estate environment and provides investors with a road map to identify and evaluate potential opportunities in the sector. As everyone knows, market…
Presented as a series of questions and answers, we explore what a credit crunch is, why it happened, how it morphed into the mess we find ourselves in today, and…
In this paper we investigate the case for global investing, examine why it is that so many American investors underweight foreign stocks, and suggest a sensible middle ground between true…
Departing from our usual format, we have fashioned this white paper as a faux amicus curiae brief as if it were being filed with the Supreme Court of the United…
The purpose of this paper is to review the background behind the AICPA Practice Aid, to examine some of the mischief that implementation of the Aid has caused, and to…
Energy is a topic that is on the minds of many investors these days. The enclosed white paper, “Investing in Oil & Gas,” is a primer on the techniques, opportunities…
Many investors are steering clear of hedge funds because of recent, widely-reported scandals, lower-than expected returns, and the drubbing hedge funds have taken from, among others, Yale’s David Swenson. In…
Because a portfolio’s performance is often imperfectly understood, the challenge of proper monitoring can be difficult. In this white paper, we set forth the key facts about the process of…
This paper explains what portable alpha strategies are and why they are important, but also identifies a series of important challenges associated with employing portable alpha strategies in real-world portfolios.…
Many investors have expressed alarm over the impact that rising rates may have on their existing bond portfolios. In the enclosed white paper, Greycourt examines the impact of rate rises…
The paper examines a couple of the principal issues associated with money managers. Specifically: We analyze why it is so difficult to identify best-in-class managers in time to profit by…
As a tool for the successful management of capital, the investment committee has been a serious disappointment. This paper discusses the reasons why investment committees tend to subtract, rather than…
Speculation has heightened that the Bush administration will seek to reduce or eliminate the double taxation of dividends paid on corporate stocks. While the form and substance of such a…
Working from a recent speech by John C. Bogle, founder and past CEO of The Vanguard Group, this paper demonstrates just how difficult it is for wealthy, taxable investors to…
The Uniform Principal and Income Act was first promulgated back in 1997, but it wasn’t until July 15, 2002 that the Pennsylvania legislature got around to enacting it. The purpose…
This white paper provides an overview of the hedge fund industry as it exists today, and identifies the myriad risks facing hedge fund investors, including the lack of transparency and…
The problem of financial conflicts of interest is a perfect example of our ability to understand a concept intellectually but fail to grasp its full significance. This white paper explores…
It’s gotten to the point where we’re afraid to turn on the news or pick up a newspaper. Like most investors, Greycourt has been deeply disturbed by the chicanery and…
The year 2002 marks the 50th anniversary of the publication of Harry Markowitz’ seminal paper on mean variance optimization, a then-obscure event which nonetheless inaugurated what we now know as…
Many wealthy families hold all or most of their wealth in one highly appreciated security. Sometimes that stock represents a control position in a family company, but more often the…
When families consider the prospect of having to establish appropriate provisions in trust instruments for spouses, children or future generations, they naturally approach the matter with trepidation. There is, first…
Many wealthy families are familiar with family limited partnerships used to discount the value of intra-family gifts. But limited partnerships can also be used as investment vehicles, and this strategy…
From the time the concept of the trust was first developed in the late Middle Ages until about the 1950s, trust assets tended to produce far more income than capital…
Although the terrible events of September 11 are still fresh in our minds, it is not too soon to consider what the implications of those events – and, indeed, the…
Private investors today have more choices than ever before. The explosive growth in private wealth in the last decade has caught the attention of every major bank, brokerage firm and…
Clients often ask us if we can recommend resources for wealthy families concerned about establishing family offices, investment strategies, philanthropy and similar issues. While there are innumerable organizations offering assistance…
Many families who have experienced a significant liquidity event will consider setting up a family office. The purpose of this white paper is to discuss the reasons families consider establishing…
An important part of Greycourt’s value proposition to its family clients is our ability to add substantially to their net after-tax wealth through careful management of investment-related taxes throughout the…
Although estate planning has long played a critical role in preserving wealth for future generations, this area has been dominated by attorneys and trust administrators. Investment professionals, however, can benefit…
The paper discusses complex estate planning vehicles that are frequently encountered in the course of Greycourt’s advisory work with wealthy families. The purpose of the paper is to highlight the…
Certain cost-conscious investors – especially smaller investors and charitable endowment funds – sometimes express concern about the level of fees charged by Greycourt and a few other premier firms. The…
Clients, money managers, investment bankers and brokers often ask why Greycourt adamantly refuses to accept soft dollar payments for its consulting services. This white paper explores the issue of soft…
Many wealthy clients have philanthropic goals, but few receive sufficient guidance regarding how best to balance these goals against personal spending needs. Deciding how to distribute wealth can be a…
Clients and money managers often ask us how we select the managers we recommend and how we work with money managers. This white paper describes Greycourt, its characteristic client base,…
The year 2002 marks the 50th anniversary of the publication of Harry Markowitz’ seminal paper on mean variance optimization, a then-obscure event which nonetheless inaugurated what we now know as…
Many investors have expressed alarm over the impact that rising rates may have on their existing bond portfolios. In the enclosed white paper, Greycourt examines the impact of rate rises…
The problem of financial conflicts of interest is a perfect example of our ability to understand a concept intellectually but fail to grasp its full significance. This white paper explores…
