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COMMODITY BUST CONTINUES TO DRAG MARKETS LOWER

January, 2016

Equity markets worldwide have declined sharply since the commencement of 2016. This is a result of deteriorating credit markets and a contraction in global liquidity. read more

Dagney Hollander

Portfolio Manager

Ravi Malik, CFA

Portfolio Manager ,
Principal


Portfolio Manager 

DOES FINANCIAL MARKET TURMOIL PORTEND A U.S. RECESSION?

February, 2016

Kenneth Raguse, CFA

Portfolio Manager

Equity markets are in the midst of a correction with the S&P 500 down 13% from May 2015 highs. Credit conditions continue to deteriorate with spreads wider than they have been at any point since 2013…read more

Ethan Ganz

Associate Portfolio Manager

HOW SSI CONVERTIBLES FIT IN EDUCATIONAL ENDOWMENT PORTFOLIOS

March, 2016

The impact of adding an allocation of SSI Convertibles to a typical Endowments portfolio is analyzedread more

George Douglas, CFA

Chief Investment Officer

CONVERTIBLES IN INSTITUTIONAL PORTFOLIOS: WHERE DO THEY FIT?

July, 2016

We would argue that convertibles belong in the same “bucket” as long/short (L/S) equity hedge funds, for the following reasons: …read more

#top Ethan Ganz Kenneth Raguse Dagney Hollander Ravi Malik, CFA

CASE FOR CONVERTIBLES: The Strategic and Tactical Argument for the Asset Class

October, 2016

Ultra-easy monetary policy across the developed world has driven up the valuation of the entire spectrum of risk assets, driving down prospective returns. It is becoming increasingly challenging for institutional players such as pension plans, insurance companies and endowments to attain their unrealistically high return targets without exceeding their risk budgets.  Asset allocators face a Hobson's choice between highly inflated high quality fixed income that is quite vulnerable to interest rate risk, equities that may be attractive on relative valuation based on equity risk premium but are at fairly elevated absolute valuations, and alternatives that have failed to generate alpha on a sustained basis.  


To compound the issue, both monetary and fiscal policy are approaching an inflection point. Resilience to potentially rising volatility and a gradual creep up in rates is likely to become an overriding consideration for asset allocators. The white paper examines this macro landscape and evaluates the ability of convertibles as an asset class to provide a solution.


Convertibles seem ideally placed to meet the challenges of the current macroeconomic environment.  They provide the ability to capture the equity markets relatively higher long term returns just when institutional investors are struggling to meet return targets. They are able to do so while mitigating downside risk and drawdowns.  Additionally the embedded equity option in convertibles becomes more valuable as rates rise and volatility rises from depressed levels.  Finally they have much more muted sensitivity to interest rate risk than fixed income at a time when such risks are elevatedread more

Ethan Ganz

Ethan Ganz

Associate Portfolio Manager

Ravi Malik, CFA

Ravi Malik, CFA

Portfolio Manager ,
Principal


Portfolio Manager 

George Douglas, CFA

Chief Investment Officer

SSI Hedged Convertible Opportunity Strategy 2016 Performance & 2017 Outlookread more

George Douglas, CFA
HISTORY TEAM PHILANTHROPY
SPOTLIGHT TAP THE EXPERTS LEARNING RESOURCES

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