Click to login and read the full article.
Don’t have access? Click here to request a demo
Alternatively, Call a member of the team to discuss membership options
US and Overseas: +1 646-931-9045
UK: 0207 139 1600
Abstract
This article analyzes the potential role of an expansive set of real asset classes in reducing inflation risk in the portfolios of long-horizon institutional investors. The author proposes a simple model of the evolution of asset returns that can be parameterized by key variables, such as 1) the sensitivity of asset returns to expected and unexpected changes in inflation, and 2) the degree of persistence in inflation. Each of the variables is a significant determinant of the long-horizon inflation properties of assets. Using his model and research, coupled with research available in the academic literature, Martin provides insight into the viability of various real asset classes as potential hedges for inflation.
TOPICS: Real assets/alternative investments/private equity, performance measurement, portfolio construction, risk management
- Copyright © 2010 Wood Creek Capital Management. Reprinted by permission of Wood Creek Capital Management; All Rights Reserved.
Don’t have access? Click here to request a demo
Alternatively, Call a member of the team to discuss membership options
US and Overseas: +1 646-931-9045
UK: 0207 139 1600