Investment Challenges in Rising Rate Environments

Investors are now confronted with a rather novel set of challenges, most notably the potential for both significantly higher interest rates and a higher degree of correlation between stock and bond prices. While common knowledge has it that a combination of stocks and bonds can provide balanced portfolio performance over time, there is good reason to suspect that this may not be the case going forward; as we will show, negative stock and bond correlation is a more recent phenomenon that is generally only associated with a low-interest-rate environment.

In this presentation, we hosted Andy Weisman, Managing Partner at Windham Capital Management, who will helped us examine historical equity and fixed income data to better understand the relationship between stock and bond prices. We also examined, at a high level, our economic environment and gained some insight into prospective investment challenges. Finally, we discussed the role of the interest-rate-momentum risk premium in addressing the identified challenges.





ANDREW WEISMAN, is a Managing Partner of Windham Capital Management and Portfolio Manager for Windham Liquid Alternatives. Mr. Weisman has more than 25 years of experience as a portfolio manager of alternative investment strategies. Prior to joining Windham in 2016, Mr. Weisman was the Chief Investment Officer of Janus Capital’s Liquid Alternative Group from 2012 to 2016. Prior to joining Janus Capital, he was Chief Executive Officer of WR Managed Accounts, LLC from 2008 to 2012. In 2002 he was awarded the Bernstein Fabozzi/Jacobs Levy Award for outstanding article published in the Journal of Portfolio Management. In 2016 he was awarded the Roger F. Murray Prize (First Place) by the Institute for Quantitative Research in Finance. He is also a Board Member of the International Association for Quantitative Finance and President of the Society of Columbia Graduates.