Battening Down The Hatches Part Two
View PDF version Battening Down The Hatches Part Two Part 2: How Should Investors Derisk?In Part 1 of this series, we posited that the next recession could take two possible forms:A traditional cyclical downturn as decelerating industrial production infects the...The Hidden Risk in a Portfolio: Crowded Trades
FORESIGHT | FIS VIEWS Crowded trade risks, while often unappreciated by investors, can be real and significant. They can be viewed as a byproduct of the immense proliferation of index and index-like products. While these products meet important investor needs, their...Chinese Tech Stocks – Is the Party Over?
FORESIGHT | FIS VIEWS ‘Chinese Tech Stocks – Is the Party Over?’ discusses whether the boom in Chinese tech stocks will last. In 2017, Chinese tech stocks soared, essentially doubling in value during the year and outperforming the MSCI Emerging Markets (EM) Index by...Market Insights Alert: MiFID II: Another Well-Intentioned Regulation That Could Undermine Investment Boutiques
Press Release Boutique and smaller investment managers will bear the brunt of regulatory costs PHILADELPHIA, PA, November 21, 2017 – FIS Group, a manager of U.S. and global developed, emerging and frontier markets equity portfolio strategies, today issued its latest...
MiFID II: Another Well Intentioned Regulation that Could Undermine Investment Boutiques
FIS Group has focused on sourcing and evaluating small boutique managers, including minority and women-owned firms, for over 21 years. Our research product includes monitoring the industry environment, and how it impacts these firms. The Markets in Financial...Mr. Spock, Don Draper and The Undoing Project – Lessons for Investment Managers and Asset Allocators
FORESIGHT | FIS VIEWS In the August Foresights, we use Michael Lewis’ latest book, The Undoing Project, as a launching pad to review the evolution of Behavioral Economics and Investing. This piece discusses 4 classic behavioral biases and how they evade detection....
Momentum: Beware of the Double-Edged Sword
This paper analyzes situations where momentum can be either a significant tailwind or exacerbate risks and undermine portfolio diversification. The Special Report looks at historical data and focuses on four key points.
From Versus to Versatility: Exploring the Cyclicality of Active & Passive Management
Panelist Information: N/A
Duration: 51 minutes
Description: This interactive webinar discussion will be led by FIS Group’s Founder and CIO, Tina Byles Williams. The discussion will highlight the actionable implications from our recently published white paper entitled, “Is Active Equity Management Alpha on Permanent or Temporary Disability?” Additionally, the paper’s models have been updated for this discussion, and Tina will reveal whether the updates had a significant effect on the original conclusions. Tina will close this webinar by providing participants with a peek at what FIS Group’s market and risk models are forecasting for 4th Quarter.
The topics to be discussed during the webinar include the following:
• Evidence pointing to the cyclical nature of periods when either active or passive management are in favor rather than a permanent “new normal” where active U.S. large-cap managers struggle to beat their benchmarks;
• Updates on several of the conclusions published in the original paper and their implication for active managers in a time of anticipated Fed tapering and slowing of corporate profit growth;
• The uncertainty of whether the ‘Risk On, Risk Off’ trading environment of the last five years will persist or give way to a renewed premium on stock picking;
• FIS Group’s forecast for the 4Q 2013 market environment and our view on investment opportunities for capital allocators and equity managers for the remainder of the year.
Survival Of The Nimble
The three to five years ending December 31, 2010 have challenged many active long only (and long-short) equity managers’ ability to produce alpha, particularly if their investment decisions are based on the intrinsic fundamental characteristics of individual stocks. As a manager of Entrepreneurial managers1 , the majority of whom employ this type of investment approach, FIS Group conducted research on the major factors driving the impairment of excess return observed over the last five years. Additionally, we examined whether the performance advantage of Entrepreneurial managers over their Established manager peers (by investment style and market capitalization) observed in our and others’ prior research had altered as a result of the changing macroeconomic and market environments. Our conclusions are as follows:
Xponance Named One Of Pensions & Investments Best Places To Work In Money Management
Xponance®, Inc. has been named one of the 2020 Best Places to Work in Money Management for firms with 20 to 49 employees, announced by Pensions & Investments today. This is the firm’s first award.
Performance Operations Analyst
The employee in this position will calculate performance, settle trades, update the portfolio accounting system, reconcile account positions, and is responsible for client reports.
Xponance at 25: Sourcing Investment Excellence Through Diverse & Emerging Investment Firms and Professionals
PHILADELPHIA – 20 May 2021 – Xponance, Inc., a multi-strategy investment firm, is celebrating its 25th year in the asset management industry with an optimistic outlook for the future.
U.S. Fixed Income Q2 2021 Update
We began last quarter’s commentary by discussing the historical context that put the first quarter performance in the history books as one of the most negative quarters for total return on record given the violent interest rate move.
An Introduction to Differentiated Income: High Yield within an Investment Grade Framework
The Differentiated Income strategy is a yield driven approach that derives alpha from unique, and diverse income streams. Income/yield is enhanced through callable securities, optionality, security structure, and variable rate coupons.
Lisa Hinds joins Xponance to Lead Client Engagement & Sustainability
Xponance, Inc., a multi-strategy investment firm & industry leader in sourcing alpha from diverse professionals and managers, announced today the hiring of industry veteran Lisa Hinds as Managing Director, Client Engagement and Sustainability.
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.
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!
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 …
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 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.
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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...Newsroom Press Releases
Xponance Newsroom Welcome to the Xponance Newsroom, we engage with the media in an open and transparent manner. About Our Firm Xponance is a multi-strategy firm offering emerging and diverse multi-manager capabilities, as well as active and passive equity, fixed...
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.
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.
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Defying Convention We are a multi-strategy investment firm whose primary goal is to be a trusted client solutions partner. Our name is derived from the word “exponent” and dually connotes our core objectives—to be a zealous champion for our clients; and to provide...
Time for a New China Strategy? The Case for Decoupling Asset Allocation in Chinese Risk Assets: Q3 2023 Market Outlook
Already responsible for an estimated $5 billion in stimulative consumer spending – the equivalent of the entire annual earnings of Starbucks, American Airlines, or FedEx – the Taylor Swift ‘Eras’ Tour is doing more than its part to save the global economy. However, the economic phenomenon being dubbed ‘Swiftonomics’ will forsake China, as the pop legend’s tour plays four dates in Japan and a record six dates in Singapore, but not in the world’s second largest economy.
Too Good to Be True: The Failure of Defensive Managers During Recent Inflationary Shocks
The failure of the returns-based approach, along with some interesting dynamics observed in factor contributions, opens an extremely interesting avenue for future analysis. What role did the macroeconomic regime (inflation, top line growth, and interest rates) play in the “defensiveness” of strategies, and what can be done to avoid misclassifying strategies during sharp regime changes?