This past week on March 31, the Biden Administration announced the American Jobs Plan, which proposes a $2 trillion plan to invest in US infrastructure. The plan highlights several areas of public investment designed to address the climate and racial inequities that have arisen in part due to an aging national infrastructure and lack of focus on research & development. If passed, the proposed...
Turning Analysis into Action: Hedge Baskets for Momentum Flow
March 28, 2021In our prior two Factor Spotlights, Who’s Going With the (Momentum) Flow? and Is Momentum Flow Riding the Interest Rate Rollercoaster?, we have explored and analyzed the themes of momentum rotation and interest rates. Based on the many inquiries and portfolio evaluation requests we’ve received since we first published on these topics, we’re encouraged that so many in the investment community...
Is Momentum Flow Riding the Interest Rate Rollercoaster?
March 21, 2021My name is Kevin Wahlberg, Product Specialist at Omega Point, and I’m excited to make my Factor Spotlight debut this week as we continue our series on the impending momentum rotation. As we wrote in last week’s Factor Spotlight - and as was highlighted in a recent Bloomberg article - a historic, pandemic-related systematic strategy rebalance is expected to lead to a significant momentum...
Who’s Going With the (Momentum) Flow?
March 14, 2021There has been a great deal of buzz among investors about a likely leadership change in momentum as we near the one-year anniversary of the market trough during the pandemic-induced downturn. As Bloomberg notes, the $2 trillion world of quantitative investing will have a potentially market-moving rebalance coming up over the next several weeks for momentum-based strategies that rely on the...
Financials: a Hidden Gem for Value Investors?
March 07, 2021Value investing may have spent the last decade on the sidelines of the broader bull market, but Financials are an exception. This week, we pivot back to our spotlight on Wolfe Research’s sector-focused risk models and uncover some astounding factor premia that have been driving the Financials space.As we’ve noted in our recent posts on the Wolfe US Energy and Wolfe US TMT models, sector models...
With Rising Rates Comes a Rebound in Value
February 28, 2021The 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,...
An Energy-First View of the World
February 21, 2021Before 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...
