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?

Where is Diversification Hiding?
September 12, 2021Alpha and diversification have been especially elusive since the start of the pandemic in early 2020. As we’ve discussed previously, common systematic factors grab a tighter hold of stocks during periods of market stress, and assets begin to get pushed in a much more correlated fashion. So, to supplement our research on the return of alpha opportunity in the market, we will explore...

Is the Overheating Economy Cooking Your Portfolio?
August 15, 2021This past week saw interesting and polarizing news, as the CPI and PPI releases yielded mixed feelings in the market. CPI rose 0.5%, which CNBC noted was in line with expectations based on the consensus from economists surveyed by Dow Jones, and Core CPI came in lower than expectations, rising only 0.3%. However, as outlined by MarketWatch, PPI jumped up higher than expected, rising by 1%...

An Energy-First View of the World
February 21, 2021Before 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...

Illuminating the Dynamics of Technology, Media and Telecom
February 14, 2021In 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 to...

Adding A Sector Lens: Introducing the Wolfe Research Sector Models
February 07, 2021We 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 &...

A Tour De Beta Across Sector SPDRs
November 22, 2020
Building upon a previous issue of Factor Spotlight": "A Tales of Two Betas", this week we return to the concept of Beta as a basic analytic measuring risk relative to the broad market. Omega Point now incorporates third-party risk model Betas for both reporting and portfolio construction purposes (but never fear, if you have your own beta calculation you would prefer to measure/manage,... |
