Systematic Global Equities: Q1 2024 Update: Balancing on a Tightrope
As we enter the second quarter of the year, market participants appear to be performing a balancing act on a tightrope amidst the crosscurrents of the macroeconomic data flow.
This Time Really Is Different in Japan, But Maybe Not for the Reasons You Think
Japan had been hiding in the same place where it was last seen in 1989 off the coast of north east China; but apparently while no one was watching (or at least no one in the American financial press) the Japanese stock market’s bell weather index, the Nikkei 225, surpassed its historical high set in 1989.
S&P 500 Value Rebalance: Everything Value Is Growth Again
This post builds on the analysis of the 2022 rebalance, examining the S&P 500 Value Index’s December 15, 2023 rebalance to assess trends and methodologies. High turnover and major sector and risk factor exposure shifts can impact both passive and active strategies, potentially increasing costs and requiring careful risk management.
Xponance Diverse & Emerging Manager CEO Roundtable
In December 2023 Tina Byles Williams, Founder, CEO and CIO of Xponance, hosted 24 CEOs from among the firm’s currently funded sub-advisors to participate in a roundtable discussion on the most pertinent challenges to emerging and diverse investment management companies.
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?
U.S. Fixed Income: Q4 2023 Update
The 4th quarter Treasury and spread rally rescued the broad fixed income market from another year of negative or barely positive (depending on sector) returns. In traditional bond market fashion, however, we find much to worry about with stretched valuations in most of the spread sectors and an uncertain path forward for the economy and interest rates.