Orchestrating Alpha Melodies: Ensemble Approach for Stock Selection Models
The ensemble approach, in a broad sense, refers to combining multiple units (which could be models, methods, or components) to work together to achieve more accurate and reliable outcomes than any individual unit could achieve alone. This is akin to making a decision based on the collective wisdom of a diverse group, rather than relying on a single opinion.
Sneha Malakar
Sneha Malakar Junior Quantitative Analyst, U.S. Fixed Income Sneha serves as a Junior Quantitative Analyst in U.S. Fixed Income at Xponance. She is responsible for supporting the portfolio managers with ongoing market surveillance and monitoring weekly economic macro...
Shades of Value: Navigating the Nuances of Value Index Differences
In this update we review the results of the most recent Russell 1000 Large Cap Value annual Style Index rebalance that occurred on June 23rd. We also compare the exposures of the Russell 1000 Value index versus the S&P 500 Value index at 06/30/23 and consider the potential impact of factor and sector differences between the indexes on investors targeting large cap value exposure.
Multi-Manager Platform: Q2 2023 Update: Navigating the Lopsided Impact of Generative A.I. in Global Markets
In a paper entitled Generative AI – Hope, Hubris, or Harrowing, our CIO, Tina Byles Williams, explored the medium to long-term effects of Generative AI on the economy, financial markets, and broader society. The task for investment managers now lies in navigating this promising yet unpredictable future, particularly as the market has priced in substantial premiums for those perceived to be the primary beneficiaries of this emerging technology.
U.S. Fixed Income: Q2 2023 Update
As we embark on the second half of 2023, we find a market in conflict. Despite the continued (relative) hawkishness by the Federal Reserve Open Market Committee (FOMC) and its members, most risk assets have continued to perform well.
Systematic Global Equities: Q2 2023 Update: Navigating Uncertainty
The second quarter of 2023 saw US equities climb higher powered by large cap growth companies leveraged to the AI (Artificial Intelligence) theme. A pickup in soft-landing expectations seemed to be among the more powerful tailwinds for equity markets.
Generative AI: Hope, Hubris, or Harrowing?
Generative Artificial Intelligence (AI) models such as ChatGPT represent a transformative leap in the ability of machines to exhibit human-like behavior and to learn autonomously. AI can now surpass humans in a wide variety of cognitive tasks. Accordingly, a recent paper out of the University of Pennsylvania concluded that large language models could displace at least 10% of work tasks, affecting 80% of the US workforce.
A Weekend at Vladimir’s: Xponance Quick Take On The Recent Events in Russia
Unless you’ve been on an island without cell phone coverage for the past several days (in which case, good for you!) you are certain to have heard of the non-coup, coup attempt in Russia over the weekend.
Decoding the Shifting Landscape of the S&P 500 Value Index
Unveiling Insights from Changes in Active Risk Exposure, Sectors, and Companies During the Annual Style Rebalance | The significant surge in index turnover during 2022 prompted an investigation into the underlying catalysts. By examining alterations in active exposure, sector dynamics, and the most notable movements of companies, valuable insights can be gleaned regarding the evolving nature of the index.
Calling on the Ghost of Alexander Hamilton
In a report presented to Congress in 1790, Treasury Secretary Alexander Hamilton described the “punctual performance of contracts”—that is, meeting all financial commitments on time—as a matter of national honor. It was also critical, Hamilton argued, to build confidence in a financial system and a national currency that could underwrite his fledgling country’s industrial development and provide “security against foreign attack”.
Multi-Manager Platform: Q1 2023 Update: Old Wisdom for New Risks: Navigating Market Uncertainty in Multi-Manager Portfolios
In an ever-evolving investment landscape, the success of active managers extends beyond traditional fundamentals and analyst outlooks. Macro and geopolitical risks have taken center stage, transforming manager evaluation and portfolio construction.
Alpine Snowball: Q2 2023 Market Outlook
The graveyard of once legendary business franchises has just added one more new member to its ignominious fraternity. The hastily arranged acquisition of Credit Suisse by its chief Swiss rival UBS in March 2023, ended the 166-year run of the global symbol of Swiss banking largesse. Credit Suisse was once the 15th largest bank in the world with offices in 50 countries and assets of over $1 trillion USD.
Systematic Global Equities: Q1 2023 Update: Muddy Waters
US equities were generally higher in the first quarter of 2023, but intra-quarter performance was mixed. The S&P 500 gained for a second straight quarter and got off to a strong start with over 6% returns in January, its best January since 2019.
U.S. Fixed Income: 1Q 2023 Update
For fixed income markets, volatility remains the recurring theme across fixed income markets. We have discussed this for more than a year, and we are once again left to contemplate volatility around the market direction narrative versus realized volatility in fixed income markets.
James Rhee
James C. Rhee Independent Board Member James Rhee is an acclaimed impact leader, entrepreneur, educator, investor, and goodwill strategist. He transforms people, brands, and organizations by identifying and unleashing purpose through the systemic union of mathematical...Xponance, Inc. Adds Senior Business Development Professional, Sets Sights on Strategic Initiatives for 2023
Press Release Philadelphia, PA – March 2, 2023 – Xponance, Inc., a leading, diverse, and 100% employee-owned multi-strategy investment firm, announced today that Marcy Rappaport has joined the firm as Director of Business Development and Consultant Relations. Marcy is...Auto Draft
Marcy Rappaport Director | Business Development & Consultant Relations Marcy Rappaport joined Xponance® in February 2023 and serves as Director, Business Development and Consultant Relations. She is responsible for new business development and managing consultant...Xponance Alts
Extend Xponance’s long track record of sourcing, supporting and seeding Diverse & Emerging Managers to the private markets. We seek to partner with GPs that manage alternative asset strategies across multiple fund types
Multi-Manager Platform: Q4 2022 Update: International Equities: Is It Time to Get Small?
We delve into this opportunity by dissecting the fundamental differences between large and small-cap indices to see if this appears to be a buying opportunity or a fair repricing given the current environment.
The Great Rebalancing: Q1 2023 Market Outlook
The investment ocean is roiling. The steady ship of 60/40 had its worst year in a generation and many investors are left feeling either adrift in the storm or run aground on a deserted isle.
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 …