Today marks our inaugural condensed version of Factor Spotlight, as I mentioned in our last issue. Over the next few weeks, we will send out this version as we hone Factor Spotlight to leverage the hundreds of style, sector, macro, and other factors, from a wide variety of leading providers on the Omega Point ecosystem available to all our customers. We anticipate that the new Factor Spotlight...
What to Expect from an Inverting Yield Curve
April 03, 2022Before we kick off our long-awaited follow-up to our Setting the Stage for Upcoming Rate Hikes issue published way back on Feb 20, seemingly eons ago, given how the world has since changed, I'd like to share some related thoughts and make you aware of upcoming changes to our Factor Spotlight newsletter.
Geopolitical Risk Quant Insight 2022 Ukraine Crisis Multi-factor Analysis Surprise Metric Surprise Characteristics Indices
Macro Factors are Driving Market Surprise
March 27, 2022Markets exhibited more strange behavior this week as the war in Ukraine raged on, and the macroeconomic backdrop continued to drive investor sentiment. So this week, we continue to leverage our Surprise Indices to highlight market reaction to current global events. We’ll also extend our analysis to illustrate a practical example of using our Surprise Index framework, combined with additional...
Geopolitical Risk 2022 Ukraine Crisis Multi-factor Analysis Surprise Metric Surprise Characteristics Indices
Your Exposure to the New Economic Order - Part III
March 20, 2022Since the Russian invasion of Ukraine on February 24th, we have leveraged our access to over 150 style and 400 sector factors to measure the market’s reaction. In our last two editions of Factor Spotlight, we introduced our Surprise Metric and our Surprise Characteristics Indices to quantify the significance of factor movements in the market and the sensitivity of assets to this new economic...
Geopolitical Risk 2022 Ukraine Crisis Multi-factor Analysis Surprise Metric Surprise Characteristics Indices
Your Exposure to the New Economic Order - Part II
March 13, 2022For the last two weeks, we have leveraged our access to over 150 style and 400 sector factors to measure the market reaction to Russia’s invasion of Ukraine. This week, we’ll be providing an update on the significant factor trends we see through the lens of our Surprise Metric.We will also introduce our Surprise Characteristics Indices, which will help quantify the reaction trade's risk and...
Your Exposure to the New Economic Order
March 06, 2022Russia’s invasion of Ukraine has transformed the world in an instant. 1.5 million people have already fled the country, and a 40-mile-long Russian convoy amasses on the outskirts of Kyiv. The humanitarian costs continue to stagger, and our hearts go out to the people of Ukraine. The third round of talks about ending hostilities is planned for this Monday; we can only hope that a cease-fire...
Quantifying the Impact of Russia’s Incursion into Ukraine
February 27, 2022Russia's launch of a long-feared invasion of Ukraine early on Thursday morning marked a significant escalation of the ongoing Russo-Ukrainian War, sending shockwaves worldwide and across the global financial markets. Further turmoil seems inevitable as Kyiv braces for a siege, sanctions against Russia cascade, and sovereign rhetoric amplifies. Investors already struggling with inflation, Fed...
Setting the Stage for Upcoming Rate Hikes
February 20, 2022As inflation continues to skyrocket to 40-year highs and Fed rate hikes remain imminent, investors are finding themselves facing continually rocky markets. Further exacerbating the already tenuous environment, the yield curve has been flattening. Many predict that the curve could even invert, signaling that slowing economic growth could be on the horizon.
Hedging Against a Dynamic Market
February 13, 2022Over the last month, we’ve outlined the growth vs. value rotation and the broader macroeconomic landscape that have sent shockwaves through equity markets early in 2022.
Last week, we moved the spotlight to help our community identify securities where growth and value can coexist. This week, we’ll continue down this path of action to demonstrate how managers can hedge to protect against the...
Fishing for Value in a Sea of Growth
February 06, 2022Over the last couple weeks, we’ve been profiling the growth vs value rotation and the macroeconomic factors driving the current market environment. Though the worst of the recent market sell-off may have passed, it’s clear that 2022 has brought a new regime which requires investors to be creative in sourcing ideas that align with their investment mandate, while allowing for opportunities to take...