Systematic Global Equities: Q4 2022 Update: Fork in the Road
As we move forward into 2023, what happens in financial markets will be determined by the interplay of two primary factors – inflation and economic growth.
U.S. Fixed Income: Q4 2022 Update
For each of the first three quarters of 2022, we spent the opening paragraph of this piece finding new and interesting ways to describe just how bad fixed income performance was, across all sectors and tenors. Yet despite capping one of the worst years for fixed income historically, 4Q22 managed to provide positive total and excess returns.
The Rise of Machines in ESG Investing
This post explores the reasons behind the growing popularity of Artificial Intelligence (AI) and Machine Learning (ML), the opportunities that are available in using these techniques for ESG investing and the challenges encountered in using them.
Xponance Named a Best Place to Work in Money Management by Pensions & Investments for Third Consecutive Year!
Press Release Philadelphia, PA (Dec. 12, 2022) – Xponance, Inc., a multi-strategy investment firm, has been named one of the 2022 Best Places to Work in Money Management for firms with 20 to 49 employees, announced today by Pensions & Investments. The...
The Power of Quality Investing
While it is intuitively easy to understand that quality companies outperform in the long run, factors that fall in the Quality category often get less attention than the more popular Value and Growth factors. As we head into a slowing economy and possibly a recession amidst an inflationary environment, quality factors once again deserve the attention of investors.
Michael A.B. Orr Joins Xponance as Managing Director & Chief Investment Officer, Alternatives
Philadelphia, October 17, 2022 – Xponance, Inc., a multi-strategy investment firm, announced today that Michael A.B. Orr has joined the firm as Managing Director & Chief Investment Officer of the firm’s Alternatives subsidiary, Xponance Alts Solutions, LLC (“XAlts”).
U.S. Fixed Income: Q3 2022 Update
Three quarters of 2022 are in the books, and it is certainly three quarters fixed income investors would all like to forget. As has become our custom, we present a Market Scorecard to document what has occurred across fixed income markets. The numbers are breathtakingly bad and putting them (once again) in a historical context, the bond vigilantes have delivered on the worst three quarter stretch (for some sectors) ever. The broad corporate market, for example, has seen its worst three quarters in succession since inception of modern corporate indices. The same can be said for the broad US Treasury market. At this point, however, we are beginning to see the light at the end of the tunnel.
The Dismal Science of Forecasts & What Our Boutique Managers Are Saying About the Current Macro Environment
Geopolitical uncertainty, war, and commodity price shocks have been the headline talking points for the industry in 2022. These certainly contributed to the current stagflationary pressures in the market, however, …
The Times They Are A-Changin’: Q4 2022 Market Outlook
As I write this research note, (October 13, 2022) annual core inflation has hit a 40-year high at 6.6% from a year ago (8.2% for overall inflation), guaranteeing another punishing rate hike by the FOMC. Market commentators are prognosticating about …
Systematic Global Equities: Q3 2022 Update: When Good News is Bad News
Equity markets fell sharply for a third straight quarter in Q3, 2022. The big story for the quarter was the tightening of financial conditions driven by expectations for a more aggressive global rate hike cycle.
Michael A.B. Orr
Michael A.B. Orr Managing Director and Chief Investment Officer, Alternatives Michael A.B. Orr serves as Managing Director and Chief Investment Officer, Alternatives. He brings more than 25 years of experience across the financial services industry. Most recently,...Russell 3000 Index Replication Strategy
Russell 3000 Index Replication Strategy Q1 2024 | March 31, 2024 Read PDF Version Annualized Returns (%) QTD YTD 1 Year 3 Years 5 Years 7 Years 10 Years Since Inception1 Gross of fees 10.02 10.02 29.30 - - - - 22.12 Net of fees 10.01 10.01 29.28 - - - - 22.11...
Alpha Potential in ESG
With the growing popularity of ESG and the incorporation of ESG metrics in various investment strategies, the debate on whether ESG is a source of alpha or not continues.
The Monetary Caped Crusaders Find Their Kryptonite: Q3 2022 Market Outlook
It’s not just Cardi B. asking the question! Economists, investors, CEOs of some of the country’s top companies and many in the general public are also worried that the economy is on the verge of recession. Plunging consumer and business confidence, contracting real incomes, and a peak in housing activity all point to a significant weakening in growth, even if the labor market remains healthy.
Opportunity Knocks or Prolonged Pain for Stocks?
Since the initial resolution of the European Sovereign debt crisis in 2012, many boutique managers have rated Eurozone equities as a particularly attractive risk/reward opportunity. The initial premise was related to profit normalization. Compared to their European counterparts, the Fed and U.S. government reacted faster and more aggressively to the Great Financial Crisis.
Systematic Global Equities: Q2 2022 Update: Tread with Caution
The second quarter of 2022 saw equity markets finish lower for a second straight quarter. The decline in the S&P 500 in the first half of 2022 has been the largest since 1970. Inflation concerns were the biggest drag on risk sentiment in the second quarter.
U.S. Fixed Income: Q2 2022 Update
We open another quarterly commentary with a discussion of just how bad the quarter was for fixed income markets. At the same time, however, a host of metrics suggest that many fixed income valuations are as attractive as they have been in several years. While we think caution and patience are the operative words in the spread sectors, we note some extreme dollar price drops given the movement in both rates and risk premia over the course of 2022.
The Russian Nesting Doll of International Value Returns: Why Your Value Manager(s) Might Disappoint You in a Value Market
Q1 2022 saw the largest one quarter outperformance of international value in twenty years, and yet 93% of international value managers underperformed the international value benchmark.1 While the disruption of commodity markets from the invasion of Ukraine led to outsized returns in commodity sensitive stocks …
Customized Portfolio Solutions
Customized Portfolio Solutions At Xponance, we understand the increasing investor interest in aligning investment portfolios with values-based priorities, including Environmental, Social, and Governance (ESG) factors, religious beliefs, and other characteristics-based...
Back to the Future: A Way Forward in Challenging Times: Q2 2022 Market Outlook
There are decades when nothing happens and there are weeks when decades happen. The last three years and particularly the weeks since February 24th have coughed up more so-called ‘tail-risk’ events than the entire pre-pandemic decade!
U.S. Fixed Income: Q1 2022 Update
As we close what has been among the most tumultuous quarters in fixed income history, we are struck by the fact that we are about to discuss interest rate moves and total returns of historic magnitude. Unfortunately, the past two years have led us to utter similar statements rather often.
Systematic Global Equities: Q1 2022 Update: Rough Seas Ahead
US equities came under pressure in the first quarter of 2022 with the S&P 500 suffering its first quarterly decline since the depths of the pandemic in March 2020. While the Fed’s hawkish policy pivot dominated the headlines …
Investment Firm Xponance Helps Asset Allocators Identify Skillful Managers With FinTech Application Aapryl
David Andrade, Chief Technology Officer of Xponance and General Manager of Aapryl, spoke about how technology can make the investment manager selection process more efficient with Wei-Shen Wong of WatersTechnology.
S&P 500 Catholic Values Strategy
S&P 500 Catholic Values Strategy Q1 2024 | March 31, 2024 Read PDF Version Annualized Returns (%) QTD YTD 1 Year 3 Years 5 Years 7 Years 10 Years Since Inception1 Gross of fees 9.80 9.80 28.88 - - - - 9.98 Net of fees 9.75 9.75 28.58 - - - - 9.77 Benchmark...S&P 500 Catholic Values Strategy
S&P 500 Catholic Values Strategy Q1 2022 | March 31, 2022 Read PDF Version Annualized Returns (%) QTDYTD1 Year3 Years5 Years 7 Years10 YearsSince Inception1 Gross of fees——-3.28 Net of fees——-3.27 Benchmark2——-3.71 1 Inception...S&P 500 DEI & ESG Strategy
S&P 500 DEI & ESG Strategy Q3 2024 | September 30, 2024 Read PDF Version Read Commentary Annualized Returns (%) QTD YTD 1 Year 3 Years 5 Years 7 Years 10 Years Since Inception1 Gross of fees 6.58 22.12 36.48 - - - - 9.17 Net of fees 6.53 21.95 36.23 -...S&P 500 ESG Enhanced Strategy
S&P 500 ESG Enhanced Strategy Q1 2024 | March 31, 2024 Read PDF Version Annualized Returns (%) QTD YTD 1 Year 3 Years 5 Years 7 Years 10 Years Since Inception1 Gross of fees 10.31 10.31 29.01 - - - - 9.60 Net of fees 10.28 10.28 28.88 - - - - 9.51 Benchmark...
The Bane of the Boutique Manager – Structural Opportunities in Small Portfolios
In a perfect world (for boutique managers), investment talent and execution would be enough. The best managers would prove their worth through performance, and allocations would follow.