Does 2021 Look Like a Good Year for Active Equity Managers?
Active equity managers tend to perform better when the average stock within a market capitalization–weighted index outperforms the index itself.
April 2021
Is It Now Growth at Any Price?
In private investing, it appears that way, but a deeper look suggests there could be a method to the valuation madness.
March 2021
Brexit Update
The historic milestone reached when the white smoke emerged from Brussels and London on 24 December 2020 represents the end of the beginning in the establishment of the new relationship between the UK and EU, rather than an end in itself. Nonetheless, with the lingering threat of a tumultuous no-deal exit now removed, the headwind that this represented to the performance of UK assets has now subsided.
February 2021
Are Hedge Funds at Risk from Retail-Driven Disorder in Equity Markets?
No, we do not believe that is generally the case. While the recent wild ride of a few companies’ share prices was novel in that it was coordinated by retail investors on the social media platform Reddit, the short coverings that contributed to the price spikes were all too familiar to long-time investors.
February 2021
Should Investors Be Concerned About the Degree of Concentration in US Equity Markets?
Yes, because rising concentration reflects rising valuations for the largest stocks, which are likely to serve as a headwind to index returns. Further, the growing market share of these companies increases the potential for rising regulatory oversight.
February 2021
Playing Defense in a Low-Rate Environment
Investors have predominantly relied on developed markets sovereign bonds for defense in balanced portfolios, but low rates have diminished their diversification characteristics.
January 2021
VantagePoint: Modern Portfolio Diversification
Investors are facing a challenging period for earning what they spend and achieving adequate portfolio diversification. With most DM sovereign bond yields near or below zero, expected returns for bonds are at all-time lows and diversification qualities are constrained. In this edition of VantagePoint, we evaluate defense and diversification options to identify a modern approach to diversification in this low-yield era.
January 2021
Will the US Political Backdrop Be Supportive of Risk Assets in 2021?
As Joe Biden is inaugurated as the 46th president of the United States, and his party holds a majority—albeit slim—in Congress, we believe his key policy initiatives will provide a supportive backdrop for risk assets in 2021.
January 2021