Market Overview

2021 Market Overview

The Hamilton Lane Market Overview reviews the trends, challenges and opportunities found in today’s global financial markets. This year’s theme – a spin on Aesop’s fable of The City Mouse and the Country Mouse – explores the bifurcation of the market and investment environment resulting from the COVID-19 pandemic and other notable events of the past year.

We invite you to join us as we share the story of what transpired in the private markets and the broader global economy in 2020, and what is likely to happen in 2021. We spin a good yarn and, like our friend Aesop, leave you with a lot to consider.



The Big Ideas:

Growth Vs. Value

In the private markets, buyout has been historically viewed as “value” and venture as “growth.” Tilting your portfolio one way or the other was generally more of a function of your access to top-tier venture than of your view of growth versus value. That dynamic has changed.

The "Real" Risk

Let’s cut to the chase: The real risk in the private markets is related to liquidity and upside capture. It is not related to risk of loss, particularly in buyout, infrastructure and credit. Understanding and assessing the risks you are taking is crucial to investing well in the private markets.

Western Europe is the New Venture

Investors tend to think about Western Europe as similar to the U.S., just a little smaller. But that characterization overlooks some important attributes that distinguish the markets – and liken it to venture. This might require a re-think of how you invest in Europe.

2020 was a story of two different realities, and surely many public market investors know that story all too well. Consider how a portfolio overweighted to video communications and online shopping compared to one overweighted to the travel industry? Depending on which side of that equation you were on, the past year (solely looked at from an investment returns perspective) was either positive – or dramatically less so.

Recent Content

News

Global Private Assets Fund Reaches Five-Year Track Record

Hamilton Lane has announced that its Global Private Assets Fund (GPA) has reached $4 billion in AUM upon hitting its five-year track record of performance.

Read the Press Release
Insights

Weekly Research Briefing: Under Pressure

Time for another monthly inflation measure. April PPI drops on Tuesday and the CPI on Wednesday. Will housing prices continue to be stubborn in their retreat? Will auto insurance again surprise to the upside while the prices of the vehicles that they insure tumble lower?

Read the Research Article
Insights

Weekly Research Briefing: On Speed and On Spot

What a good look for the Federal Reserve in the last week. U.S. Treasury yields fall 20 basis points, crude oil is back below $80, the S&P 500 VIX has fallen to a 13-handle and the major U.S. equity indexes have reclaimed their 50-day moving averages.

Read the Research Article

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