As we head full force into earnings season next week, I have been thinking about the most popular topics of discussion with our clients over recent months. Last Friday’s rocky market action set the backdrop for what is sure to be an interesting week ahead, as geopolitical developments and economic news mean there will be so much to parse.
Up until now, we have evaluated companies that have been “bad actors” when it comes to ESG. For this week’s Factor Spotlight, we’ll take a look at how the institutional investment community is forcing positive change in company behavior and influencing practices that align with growing shareholder interest in broadly recognized ESG principles. We will turn the tables on the outdated...
During Climate Week in NYC, I had the opportunity to speak with many investment practitioners, including CIO’s, fundamental PM’s and analysts on how they are integrating ESG into their investment decision making process. I had a particularly fascinating conversation with Gabriel Thoumi, CFA, who works with two ESG related NGO think tanks in the financial markets space: Planet...
We hope you had a chance to read this past Wednesday’s Special Factor Spotlight Flash Reporton the growing fallout in momentum. This trend continues unabated into this edition, and as you can see in the tables below, momentum finished the week with the largest decline in both the US and Worldwide factor models. We plan to resume our ESG coverage next week, but in the meantime we...
Due to the recent outsized factor moves in the recent week, we are releasing a Factor Spotlight Special Flash Report. Although the S&P 500 remains near all-time highs, we will examine what is lurking below the surface and what everyone talking about—-- the fallout of Momentum.
I’m Julia Casals and this week I’ll be taking the reins of Factor Spotlight to address ESG from a different lens, that of the Asset Owner or investment allocator as opposed to the investment manager. I recently joined Omega Point as Head of Investment Strategy and my responsibilities will include working with our clients in applying quantitative techniques in their investment...
Last week, we introduced our new ESG overlay that allows you to see ESG KPIs alongside traditional factor exposures for any given portfolio. We’ve also recently introduced a new Compare feature that allows Omega Point users to compare performance, risk, and exposure between multiple portfolios, ETFs, or securities. Today, we’ll use this tool to analyze ESG characteristics for the ...
Over the past several weeks, we’ve decomposed the performance trends of various ESG KPIs (courtesy of OWL Analytics). Not only have we measured how individual ESG KPIs have performed independently, we’ve also seen how the aggregated pillars of Environmental, Social, and Governance have played out over the past 5 years. Through our analyses we’ve established that companies that share...
Today, we’ll turn our attention to the individual KPIs that form the “Governance" piece of the "Environmental, Social, & Governance" investment framework. We’ll also provide this week’s update on market and factor (US & worldwide) trends. Unsurprisingly, we've seen Total Risk spike in the US and worldwide models, while the risk-on factors of Market Sensitivity and Volatility have...
