Last year, we introduced Extreme Movers, the latest tool in our arsenal to understand what is driving markets from week to week. Last week, we analyzed the historical behavior of the US Extreme Movers portfolio to better contextualize recent markets in light of how they stack up against periods dating back to 2007. We used that historical data to better categorize markets by how volatile and...

Factor or Alpha Driven? Interpreting The Recent Market Environment
January 08, 2023We hope you had a relaxing holiday season and would like to wish you and your families a happy, healthy, and successful 2023!
The first week of January is often a good time to reflect on the prior year. Many of our readers are actively working on their 2022 communication to their stakeholders, summarizing key strategy metrics, lessons learned, and potential improvements for the future.

Where’s the Alpha? - 2021 Edition
January 02, 2022The transition from one year into the next offers opportunities for reflection and learning. As we mark the end of a year filled with tumult and tribulation, we can use past patterns to help inform where we may find new successes in the future. Over the next few weeks, we’ll be looking back to 2021 to help understand what the alpha opportunity looked like for fundamental investors and help inform...

The Return of Alpha
August 08, 2021From the onset of the COVID pandemic through much of the year 2020, we saw the deterioration of alpha-driven stocks as common, systematic factors dictated performance. So this week, we’ll revisit a question we last posed at the beginning of the year: “Where’s the Alpha?”. Have opportunities for idiosyncratic, stock-specific outperformance returned? If so, where can we look to find it?

Is there ESG Awareness in Alpha-Driven Stocks?
January 17, 2021With the inauguration of the 46th US president just days away, there has never been a riper time for the fruit of socially responsible investing. President-Elect Biden has promised to directly address the environmental, social, and governance issues that are bound to plague society if left with no focused intervention.

Alpha's DNA Through the Lens of Alternative Factors
January 10, 2021If there is one thing that 2020 has taught us, it is to expect the unexpected. The tragic events that unfolded at the Capitol building this past Wednesday were no exception, and our hearts go out to the families who lost their loved ones. We can only hope that the path ahead is now a little more stable.
In last week’s Factor Spotlight, we discussed the concept of an alpha-driven stock and...

Where's the Alpha? Characteristics of Alpha-Driven Stocks in 2020
January 04, 2021Happy New Year from the Omega Point family! While 2020 was a challenging year for many, we hope that the holidays provided a much needed reset to start 2021 off fresh.Sometimes the best way to start a new year is to reflect on behaviors and trends from the prior year. With this in mind, we are kicking off our inaugural article for this year by reviewing the qualities associated stocks whose...

Examining Industry Alpha Trends & Opportunities for Diversification
January 12, 2020We’ve been receiving a lot of good feedback on our alpha-driven series, including last week’s dissection of alpha trends at the Industry Group (GICS2) level since Jan 2018. To wrap up our alpha trends series, we’ll pull the lens back to perform more of a longitudinal study, so we can get an understanding of how these industry trends have played out since 2007.We’ll also provide our...

Looking into 2020: Industry Alpha Trends
January 05, 2020
Happy New Year! We hope you enjoyed the holidays with your family and are rested, recharged, and ready for 2020.To kick off the new year, we continue our analysis on alpha-driven stocks. This week, we’ll extend that analysis to the Industry Group level, as we uncover alpha trends that just might surprise you. We’ll also provide our market and factor update for the past two weeks. |
