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With Rising Rates Comes a Rebound in Value

February 28, 2021

The past few weeks have had investors scratching their heads as we’ve seen rates surging in 2021. Long-term US treasury yields have risen over 50 bps since the end of 2020, with the majority of that rise happening in the past month alone. Coupled with the January retail crowding event and the recent market sell offs that have posed unusual challenges for the typically-soaring tech stocks,...

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Alyx Flournoy, CFA
Alyx Flournoy, CFA

An Energy-First View of the World

February 21, 2021

Before we kick off this week’s edition, we’d like to take a brief moment to send our thoughts and wishes to the millions of Texans, which include our customers and several members of Omega Point’s team, who are struggling with freezing temperatures, power outages and disrupted water service. This is a crisis of epic proportions, especially to those most vulnerable, and it is our hope that...

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Alyx Flournoy, CFA
Alyx Flournoy, CFA

Illuminating the Dynamics of Technology, Media and Telecom

February 14, 2021

In last week’s Factor Spotlight, we discussed the merits of using sector models as an additional lens for understanding risk in your portfolio. Broad market models are very helpful to establish a baseline for risk in the portfolio relative to the overall market; however, sector models can ‘tune’ the factors more accurately to the unique market behavior of each sector. This week, we’re going...

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Alyx Flournoy, CFA
Alyx Flournoy, CFA

Adding A Sector Lens: Introducing the Wolfe Research Sector Models

February 07, 2021

We are thrilled to announce that we have added several highly anticipated Risk Models from Wolfe Research to the Omega Point platform that will help enhance performance/risk analysis, portfolio construction, and precision basket hedging. The Wolfe Sector models now available include:

  • Energy
  • Consumers (Discretionary + Staples)
  • Technology, Media, and Telecom (TMT)
  • Healthcare
  • Industrials &...
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Chris Martin
Chris Martin

Are You Prepared for the Next Short Squeeze?

January 31, 2021

This week’s tumultuous markets showed us the power of the crowd, even when the crowd is an untraditional one. Retail investor sentiment has caused pain in the short seller’s market before, but the past week saw market movement at unprecedented levels in recent times, as evidenced by the massive trading volumes on the NYSE and NASDAQ. Could the pain caused in institutional investor...

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Alyx Flournoy, CFA
Alyx Flournoy, CFA

Identifying Crowded Names — Q1 2021 Earnings Season

January 24, 2021

Before we jump into this week’s topic on Hedge Fund Crowding, we have some exciting news exclusive to our loyal readers of Factor Spotlight. If you would like to better understand the forces impacting your own portfolio through the lens of Hedge Fund Crowding or the many other Omega Point screening tools you read about here each week, now is your ideal opportunity. For a limited time, we...

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Alyx Flournoy, CFA
Alyx Flournoy, CFA

Is there ESG Awareness in Alpha-Driven Stocks?

January 17, 2021

With the inauguration of the 46th US president just days away, there has never been a riper time for the fruit of socially responsible investing. President-Elect Biden has promised to directly address the environmental, social, and governance issues that are bound to plague society if left with no focused intervention.

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Alyx Flournoy, CFA
Alyx Flournoy, CFA

Alpha's DNA Through the Lens of Alternative Factors

January 10, 2021

If there is one thing that 2020 has taught us, it is to expect the unexpected. The tragic events that unfolded at the Capitol building this past Wednesday were no exception, and our hearts go out to the families who lost their loved ones. We can only hope that the path ahead is now a little more stable.

In last week’s Factor Spotlight, we discussed the concept of an alpha-driven stock and...

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Alyx Flournoy, CFA
Alyx Flournoy, CFA

Where's the Alpha? Characteristics of Alpha-Driven Stocks in 2020

January 04, 2021

Happy New Year from the Omega Point family! While 2020 was a challenging year for many, we hope that the holidays provided a much needed reset to start 2021 off fresh.Sometimes the best way to start a new year is to reflect on behaviors and trends from the prior year. With this in mind, we are kicking off our inaugural article for this year by reviewing the qualities associated stocks whose...

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Alyx Flournoy, CFA
Alyx Flournoy, CFA

2020 Holiday Wrappings

December 20, 2020

We finally arrive at the 48th and penultimate issue of Factor Spotlight for what has been quite a surreal and calamitous 2020.All of us at Omega Point would like to wish you and your loved ones a very Happy Holiday season and a peaceful and prosperous New Year.

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Omer Cedar
Omer Cedar