Omega Point Blog

2021 Holiday Wrappings

December 19, 2021

‘Tis the season for tying up loose ends, last-minute gift searching, and roasting chestnuts over open fires.

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Omer Cedar
Omer Cedar

The Tax Trade: Fact or Fiction?

December 12, 2021

Year-end is invariably a time of increased buzz around tax-loss harvesting as investors across all corners of the market look to minimize tax liabilities. Traditional tax-loss harvesting strategies typically include selling losers to offset gains and lower the overall capital gains tax liability. These strategies can also extend to selling winners to lock in gains offset by the losses incurred...

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Alyx Flournoy, CFA
Alyx Flournoy, CFA

Where’s the Macro?

December 05, 2021

Throughout 2021, we’ve explored a variety of macroeconomic influences on equity risk and performance, from interest rates to inflation, commodities, and more. Of course, the magnitude of the macro role in equity markets fluctuates over time but, for many, it has felt as though macroeconomic factors have been a massive driver of performance for nearly two years running. As a result, as fundamental...

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Kevin Wahlberg
Kevin Wahlberg

The Avis Short Squeeze, Who’s Next?

November 21, 2021

Months after the “Meme Stock” and retail events of early 2021, fears of short squeezes resulting in massive losses are still very much on investors’ minds. Crowding among particular industries and individual stocks, combined with continued market volatility and increased retail investing, has maintained the conditions that have allowed more and more squeeze events to occur.

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Kevin Wahlberg
Kevin Wahlberg

Telling a Sector Story of Growth vs. Value

November 14, 2021

In last week’s Factor Spotlight, we revisited the Growth vs. Value debate. We highlighted the factor and sector drivers that characterized the 2021 rotation that has seen Growth fall out of favor and Value come back into style. Of course, the Growth vs. Value story has been a prevalent story for investors for quite some time, but why is it necessary to consider these themes today?

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Alyx Flournoy, CFA
Alyx Flournoy, CFA

The Battle Between Growth and Value

November 07, 2021

Before we kick off, I wanted to let you know that the latest issue of Regius Magazine features an article from Omega Point on “Improving Tax-Aware Performance Through Better Substitutions.” You can find us on p.74, and I encourage you to check out the rest of the excellent coverage, which focuses on Crypto, ESG, and Sustainability.

The last two times we highlighted the relationship between Growth...

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Kevin Wahlberg
Kevin Wahlberg

Dissecting the Q3 2021 Momentum Rally

October 31, 2021

The Momentum factor tends to be top-of-mind for factor practitioners in all markets, but it has been particularly tough to take the eye off of Momentum in 2021. The last time we spotlighted Momentum, we pointed to the beginning of a transition in the makeup and characteristics of Momentum stocks. Because Medium-Term Momentum is typically a measure of a stock’s trailing twelve-month return,...

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Kevin Wahlberg
Kevin Wahlberg

Is “Oil Risk” Making a Comeback?

October 24, 2021

Talks of an impending oil crisis have been making headlines over the past several weeks. Some argue that the “impending” crisis is already here, while others believe the worst is yet to come. The economic reopening has exposed major oil shortages, which has spurred oil prices to go on the run in tandem with increased global demand. These conditions, coupled with the global supply chain...

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Alyx Flournoy, CFA
Alyx Flournoy, CFA

Identifying Crowded Names - Q3 2021 Earnings Season

October 17, 2021

Crowding continues to be a popular topic of conversation among investors. Crowded stocks can exhibit exacerbated pricing pressure when material information reaches the market. In addition, earnings releases can increase price volatility, making earnings a strong catalyst for crowded names.

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Kevin Wahlberg
Kevin Wahlberg

Stress Testing a Global Evergrande Shock

October 10, 2021

China Evergrande’s liquidity issues continue to stir up fears among investors of a localized downturn that could send shockwaves across global markets. Plans by Hopson Development Holdings to acquire a 51% stake in Evergrande could provide at least some short-term wiggle room for the company to remedy its cash flow problems. Even if this proves to be a lifeline to Evergrande, there’s already...

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Alyx Flournoy, CFA
Alyx Flournoy, CFA