Omega Point Blog

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The New Frontier: Investments in Clean Infrastructure

April 04, 2021

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...

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Alyx Flournoy, CFA
Alyx Flournoy, CFA

Turning Analysis into Action: Hedge Baskets for Momentum Flow

March 28, 2021

In 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...

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Kevin Wahlberg
Kevin Wahlberg

Is Momentum Flow Riding the Interest Rate Rollercoaster?

March 21, 2021

My 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...

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Kevin Wahlberg
Kevin Wahlberg

Who’s Going With the (Momentum) Flow?

March 14, 2021

There 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...

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Alyx Flournoy, CFA
Alyx Flournoy, CFA

Financials: a Hidden Gem for Value Investors?

March 07, 2021

Value 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...

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Alyx Flournoy, CFA
Alyx Flournoy, CFA

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