Omega Point Blog

Better Portfolios Through Experimentation

December 08, 2019

We hope you enjoyed Thanksgiving weekend with your family while we took the week off from Factor Spotlight to do the same. Today, we’re excited to introduce our latest product feature - the Experiments Manager, which is now available for all Omega Point members. The utility of Experiments revolves around portfolio rebalancing, as it allows you to evaluate different “what-if”...

Read More
Omer Cedar
Omer Cedar

Digging Deeper Into Macro Factors - which companies are most sensitive to China & US economies?

November 24, 2019

Last week, we introduced Wolfe Research’s Macroeconomic Factor Overlay by highlighting some interesting macro factors that the S&P 500 is exposed to. One of the chief follow-up questions that we’ve heard is “How do I determine the potential impact on my portfolio if these macro indicators change?”Today, we’ll dig a little deeper into the Wolfe macro factor library to better...

Read More
Omer Cedar
Omer Cedar

Adding Global Macro Insights to your Portfolio

November 17, 2019

Today, we'll take a break from our Smart Hedging series to introduce a new macroeconomic factor overlay available on the Omega Point platform, courtesy of our partners at Wolfe Research. We’ll also share our weekly market and factor updates.

Read More
Omer Cedar
Omer Cedar

The Global Trend Beyond Smart Hedging

November 10, 2019

Our recent series centered on Smart Hedging appears to have struck a major chord with many readers, judging by the high volume of comments and questions we’ve received since we first broached the topic. This is an area the institutional investment community has been grappling with as managers seek to strengthen their internal risk management practices while remaining competitive for...

Read More
Omer Cedar
Omer Cedar

Building a Smarter Tech Hedge

November 03, 2019

Over the past couple of weeks, we’ve discussed the benefits of using a smarter hedge basket vs. the standard and ubiquitous ETF hedges that most portfolio managers use to some extent. Most recently, we built a higher Volatility basket out of the SPY constituents, through which a manager could have made an incremental +5.68% return per year over the traditional SPY hedge.

Read More
Omer Cedar
Omer Cedar

Building a Superior SPY Hedge

October 27, 2019

Last week, we discussed the significant drawbacks of using the S&P 500 SPDR (SPY) as a market exposure hedge. We established that 1) the SPY hedge is wildly common among the institutional investment community (40% of the SPY’s AUM is short interest), and 2) it carries an inherent long bet on Volatility - a negative premia factor that’s down 32% over the past five years.

Read More
Omer Cedar
Omer Cedar

The Inherent Volatility of a SPY Hedge

October 20, 2019

This week we’ll be kicking off a series on “smart hedging,” by which we aim to find a more efficient and elegant solution to hedging market exposure in your portfolio. We’ll also provide our weekly market and factor update.

Read More
Omer Cedar
Omer Cedar

The Riskiness of Crowds

October 13, 2019

As we head full force into earnings season next week, I have been thinking about the most popular topics of discussion with our clients over recent months. Last Friday’s rocky market action set the backdrop for what is sure to be an interesting week ahead, as geopolitical developments and economic news mean there will be so much to parse.

Read More
Julia Casals
Julia Casals

Dangling the ESG Carrot

October 06, 2019

Up until now, we have evaluated companies that have been “bad actors” when it comes to ESG. For this week’s Factor Spotlight, we’ll take a look at how the institutional investment community is forcing positive change in company behavior and influencing practices that align with growing shareholder interest in broadly recognized ESG principles. We will turn the tables on the outdated...

Read More
Julia Casals
Julia Casals

An ESG Tale of Tree Smuggling, DNA Testing, & Poisonous Gases

September 29, 2019

During Climate Week in NYC, I had the opportunity to speak with many investment practitioners, including CIO’s, fundamental PM’s and analysts on how they are integrating ESG into their investment decision making process. I had a particularly fascinating conversation with Gabriel Thoumi, CFA, who works with two ESG related NGO think tanks in the financial markets space: Planet...

Read More
Julia Casals
Julia Casals