Bruce is responsible for investment strategy at Sentinel Trust, overseeing teams responsible for all asset classes and making tactical allocation decisions across all portfolios. As the firm’s first dedicated investment professional, he created the investment platform around the unique needs of wealthy families.
He has a special interest in real estate and wrote his doctoral dissertation on Real Estate Investment Trusts. Prior to joining Sentinel Trust, he worked with several real estate development families to diversify their holdings.
Bruce has over thirty years of experience investing on behalf of wealthy families. He speaks to family office and academic audiences, including Rice University and the Stanford Graduate School of Business.
- Director of Non-Real Estate Investments, Hines (Gerald D.) Interests, Houston, TX (1987–1998) – First dedicated family office employee. Was responsible for investing assets outside of this family’s high-profile core real estate business. Invested tactically (and directly) in numerous asset classes, both traditional and alternative, including a full range of credit, international, derivative, and commodity based strategies.
- Director of Investments, Taubman Investment Co., Bloomfield Hills, MI (1985–1987)
- The Fay School, Former Trustee, Treasurer and Chairman of Finance and Search Committees
- Houston Committee on Foreign Relations, Member
- Harvard University Houston Schools Committee, Interviewer for admissions
- EMERGE Fellowship, Mentor
- Refugee Services of Texas, Volunteer
- “Getting Started in Private Equity” – Opal Investment Forum
- “Confessions of a Mean-Reversionist” – Rice University, Center for Computational Finance and Economic Systems
- “A Family Office Perspective on Venture Capital Investing” – Mohr Davidow Annual Meeting
- “Real Estate Investment Opportunities: Putting the Pieces Together” – Marcus Evans Private Wealth Management Summit
- “Global Warming-Not Just Yet”
- “The Bubble Years: Were They Just a Dream, Dr. Greenspan?”
- “Capital Market Assets: Dead Men Walking?”
- “New Age Economics: Do You Believe?”
- “The New Carry Trade: Let’s Make a Deal”
- “And Then There was One”
- “Economic Recovery Plays OK, U.S. Equities Not the Way”
- “Sentinel Horizons”
- “Investment Themes for Year 2000 and Beyond”
Following February’s market gyrations, which saw inflation fears exacerbated by the unwinding of ill-fated short-volatility strategies, March promised to be a month of rest and recovery as global growth was plateauing at a high level and the monthly employment report presented a remarkable combination of strong employment growth, higher workforce participation and little sign of wage pressures. In addition, North Korea tensions eased while NAFTA and South Korean trade talks advanced smartly.
Following January’s equity melt-up, February saw the sharpest equity reversal in seven years as “warmer” economic reports and the enactment of additional fiscal stimulus triggered U.S. inflation fears. The unwinding of various flavors of short volatility strategies—risk parity, commodity trading advisors (CTAs), short volatility exchange traded funds (ETFs), and targeted volatility insurance products—contributed to the speed of the decline, as the VIX (equity volatility index) reached its highest levels since 2015. Global equities fell 4% uniformly across segments; bonds were unable to serve as a portfolio anchor, losing 1%, as it is hard for a hedge to be effective when it is the catalyst for the equity market decline. The dollar ended higher after a volatile month, while weak energy prices weighed on the commodity complex.
Prospects for a further acceleration in economic growth, combined with capital expenditures and corporate earnings supercharged by tax reform, drove outsized market gains in January, as equity investors extrapolated inflation-free above-trend growth into the future. Fixed income investors had a different perspective on inflation, with the increase in yields and fall in price wiping out a full year’s return for many owners of Treasuries. Higher yielding bonds significantly outperformed their investment grade peers. A continued fall in the dollar bifurcated the world bond market and supported commodity prices.
US tax reform legislation, benign US inflation, overseas economic strength and the resulting dollar weakness contributed to a broad-based rally in risk-assets, with Eurozone equities the only significant outlier. The Federal Reserve Board (Fed) did raise rates in December, as expected, but continued curve flattening more than offset any tightening effect on the global economy or financial markets. Emerging market equities, longer-dated fixed income and commodities and commodity-sensitive markets outperformed.