Omega Point Blog

Recent Posts

Screening Stocks with an ESG Overlay

August 18, 2019

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...

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Omer Cedar
Omer Cedar

How is Good Governance Rewarded?

August 11, 2019

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...

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Omer Cedar
Omer Cedar

What Drives Socially Conscious Investing?

August 04, 2019
Continuing our “Summer of Sustainability,” we’ll be examining the KPIs that have driven returns for the Social portion of “Environmental, Social, & Governance” over the past 5 years. We’ll also provide an update on market and factor (US & Worldwide) trends over the past week. Of particular note, we’ve seen recent strength in Profitability and Earnings Yield, while Size has taken a...
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Omer Cedar
Omer Cedar

What KPIs Drive Green Investing?

July 28, 2019
Continuing our series on sustainable investing, we’ll be digging into the Environmental pillar of ESG in order to determine the specific KPI that the market has valued most within that bucket over the past 5 years. Our market and factor (US & Worldwide) updates will follow, with our chief takeaways being that Earnings Yield is surging in the US, while Market Sensitivity and...
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Omer Cedar
Omer Cedar

ESG Breakout Performance Trends

July 21, 2019

Since the kickoff of our “Summer of Sustainability,” we’ve been truly encouraged by the feedback we’ve received from our readers. It’s apparent that not only has interest in ESG among investors been growing over time, but that allocators are increasingly demanding that money managers incorporate an ESG framework in their strategies. Because ESG is such a potentially nebulous...

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Omer Cedar
Omer Cedar

Sector Biases When Building an ESG Portfolio

July 14, 2019

We hope you enjoyed your Fourth of July with your family while we took the week off to do the same. Continuing our “Summer of Sustainability” series, we’ll begin discussion on how to create a true ESG (Environmental, Social, & Governance) portfolio. This week, we’ll dig into performance trends in our aggregate ESG portfolio to determine how sector biases can affect portfolio...

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Omer Cedar
Omer Cedar

Sustainable Investing - Quantified

June 30, 2019

The past few years have seen the emergence of ESG (Environmental, Social, & Governance) investing. The trend has taken hold as fund managers, allocators, and the general public now place increasing levels of import on sustainable investment. The difficulty with any new investing framework is being able to separate signal from noise, and to that end we’re happy to introduce our ESG...

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Omer Cedar
Omer Cedar

Overbought/Oversold Factors Around the World

June 23, 2019

We’ve spent the past couple of weeks focusing on Momentum and Growth (both of which are continuing to revert to the mean on a normalized basis). Today, we’re going to pull back the lens and examine factor trends in our US and Worldwide models, in order to identify some other themes that are playing out right now.

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Omer Cedar
Omer Cedar

Growth & Momentum Are Now Reverting

June 16, 2019

Last week, we discussed how Growth and Momentum are both overbought in our normalized return framework, and urged caution to managers who are long exposure to those factors (most notably Tech investors). This week, we have an update on how these factors have trended (spoiler alert: Momentum is now reverting) and see what we can learn from historical instances when Growth and...

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Omer Cedar
Omer Cedar

Tech Investors Take Note: Growth and Momentum Are Overbought

June 09, 2019

Today, we'll be taking a break from examining current trade entanglements through the lens of the Exchange Rate Sensitivity factor. Instead we'll check in on Growth and Medium-Term Momentum, two factors that have seen rapid gains in our normalized return framework over the past few weeks. They've both recently been flagged as Overbought and Extremely Overbought, respectively, and...

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Omer Cedar
Omer Cedar