Given the necessity of research and development within the healthcare industry, it has always been a sector that has been rife with innovation. But how are new digital tools like big data, AI, and predictive analytics affecting change within healthcare and other sectors?
It's 10 o'clock at night, and Benjamin Arnold's day is just beginning. The former Goldman Sachs trader is gearing up to trade equities in Asia from his small office thousands of miles away in Park City, Utah.
Traditional, long only portfolios will naturally access risk premia through exposures to the equity risk premium and the bond term premium. Alternative Risk Premia strategies seek to harvest other types of risk premia, often utilising both long and short exposures. Wellington Management describes these strategies as falling into four broad categories - trend, carry, convergence, and…
Over the 15-year period ending March 31, 2019, the biggest 25% of active large-cap equity funds managed about 90% of all the assets under management (AUM) held in active large-cap equity funds. This may suggest that investors’ fund selections skew toward larger funds. But is bigger always better? This topic has been widely debated: although larger funds may be able to hire more skilled fund…
Once a quarter, at statement time, most people look at returns and judge their investment experience. I always wonder what standard they use in making that judgment. Having run an investment advisory business for more than 35 years, I’ve heard lots of “judgments.” The one I have the most difficulty with is the standard of the client who I call the “Perfect Timer.” The Perfect Timer…
Today’s modern institutional portfolio is increasingly complex. Private equity, private debt, real estate, infrastructure, etc. are important asset classes to improve diversification and portfolio efficiency. But they are also less liquid. This creates the potential for funding status problems if equities become the primary source of liquidity in a downturn. Defensive equity investing offers…
With increased interest in defensive equity investing, asset owners and consultants need constructive ways to evaluate results from managers. Methods for quantifying the expectations and effectiveness of defensive equity strategies range from the common to the more esoteric or convoluted.
The size factor has recently come under attack from smart beta providers because its performance has lagged behind other factors. A common recommendation is to remove size from the factor menu, to give more weight to factors with better performance. But due to its low correlation with other factors, size offers substantial diversification benefits. The post Size matters: diversity across…
Equity strategies help steer the ship to best H1 gains since 2009.
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Despite the S&P 500 closing at an all-time high on Friday, the index's internals and fundamentals are too weak to maintain the rally, Morgan Stanley said Monday.
We recently published a research paper, “Building Better International Small-Cap Benchmarks,” offering a comprehensive look at the recently launched S&P Global SmallCap Select Index Series. These indices are designed to measure the performance of small-cap companies with positive earnings.
The mega-cap tech stocks that have led much of the record-long bull run have started to lose steam, but investors are still giving them the benefit of the doubt.
Small-caps stocks continue to crater, especially next to their large-cap peers, as investors shed riskier plays in a confusing global economic landscape.