Summary
This document is a research note that provides an analysis of portfolio performance across various asset classes for the third quarter of 2022. It outlines the significant negative returns experienced by portfolios in equities, fixed income, and alternatives, marking a downturn not seen since the Global Financial Crisis. Despite these short-term losses, the report indicates that long-term performance remains high, with 10-year portfolio returns exceeding long-term averages. The analysis highlights the performance of independent registered investment advisors and single family offices, representing a substantial amount of assets. The report details the performance quartiles for major asset classes, noting that median portfolios had negative returns, with equities earning -6.7% and fixed income portfolios at -3.2%. It also discusses the impact of inflation and economic slowdown on asset valuations, while emphasizing the importance of skilled manager selection in private markets for achieving excess alpha. The document concludes with insights on the performance of alternatives and the overall market trends observed during the period.
