Correlations in “growth” and “value” equity factors may undercut the diversification benefits of benchmark-relative exposures to sectors and geographies. Consistent portfolio balance by “styles,” though, can lower beta and lift alpha.
Flexible cross-asset oriented investment teams are positioned to assess fundamentals and valuations across discreet asset classes, facilitating relative value tradeoffs and improving the potential for superior risk-adjusted returns.
Back tests and limited data sets don’t create a solid foundation for future returns, or obviate the need for judgment around select risk exposures and portfolio construction.
While deep industry knowledge is very important, investment outcomes are even more important. We believe the interdisciplinary approach leads to better investment decisions because we’re evaluating opportunities across sectors...
Even before the October equity market selloff, long downtrodden value stocks were perking up as pricey growth stocks stumbled after a decade of outperformance. But durable index-level shifts are harder to call than individual stock-price disconnects from business fundamentals.
A company's efforts to improve its sustainability are often a better gauge of future success than its current ESG (Environmental, Social and Governance) score.
The popular wisdom regarding interest-rate risk, or duration, tends to be oversimplified and ultimately misleading.