Private Markets
Everyone is talking about the Total Portfolio Approach. Few are explaining how to do it. A new series from BCA’s Portfolio Construction team takes TPA from whiteboard to execution. The first three reports cover running the team, building the portfolio, and how TPA and Evergreen funds are reshaping Private Markets.
The Total Portfolio Approach stumbles really on one thing: the team. Everyone says it, but nobody has prescribed the fix. We provide three logistical principles that close the gap. And they work for SAA investors too.
With capital locked up for years, scenario analysis is especially valuable for Private Market investors. We provide a framework for mapping returns on new investments if the US 10-year yield hits 6.5%, a level last seen in 2000. Just do not expect the risk premiums of that era.
High-profile adoptions of the Total Portfolio Approach (TPA) and the often-cited outperformance of TPA funds have generated FOMO among funds following an SAA framework. Buzzwords and vague rulesets frustrate anyone trying to learn more. We combed through the TPA literature, built practical examples, and found that many components are just best practices, repackaged. Our suggestion: look past the hype, adopt what fits, ignore what doesn't.
BCA's CoreMacro and Portfolio Construction teams combine two distinct but intersecting lenses to revisit a once heralded opportunity: India. We upgrade India across both public and private markets, but the conviction is not the same everywhere.
