SWFs testing the edges of alternatives investing

Sovereign wealth funds (SWFs) enjoy deep pockets, large and sophisticated investment teams, long investing horizons, strong leverage on fee negotiations, and often first refusal on prized deals.  But even given all of these advantages, they are finding it difficult to outperform in today’s low yield environment.   Asset valuations across many markets appear perilously lofty, and good returns hard to find. Stocks globally have hit record highs. The MSCI All Country World Index—wh…