There is no shortage of systematic distortion in the market as we kick off Q4 2021 earnings season. As we have in the past, we will highlight the most crowded stocks from both a long and short perspective as earnings calls begin. Crowded stocks can exhibit exacerbated pricing pressure when material information reaches the market. In addition, earnings releases can increase price volatility,...
Quantifying the Impact of an Increasingly Hawkish Fed
January 09, 2022This week, we’re temporarily pausing our “Where’s the Alpha?” series to help our community analyze the potential impact of the Fed’s hawkish surprise earlier this week.
The Fed’s Dec 14-15 meeting minutes became publicly available on Tuesday, revealing that the Fed intends to accelerate the reduction of the bonds held on its balance sheet. While most observers expected measured rate increases,...
Where’s the Macro?
December 05, 2021Throughout 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...