Over the past several months, we've introduced Extreme Movers, the latest tool in our arsenal to understand what is driving markets from week to week. We also debuted an international version of the Extreme Movers portfolio to help investors compare fluctuating alpha opportunities and factor-driven dynamics between the US and the world. The Extreme Movers portfolios allow us to apply hindsight to...
Hedging Against a Dynamic Market
February 13, 2022Over the last month, we’ve outlined the growth vs. value rotation and the broader macroeconomic landscape that have sent shockwaves through equity markets early in 2022.
Last week, we moved the spotlight to help our community identify securities where growth and value can coexist. This week, we’ll continue down this path of action to demonstrate how managers can hedge to protect against the...
Fishing for Value in a Sea of Growth
February 06, 2022Over the last couple weeks, we’ve been profiling the growth vs value rotation and the macroeconomic factors driving the current market environment. Though the worst of the recent market sell-off may have passed, it’s clear that 2022 has brought a new regime which requires investors to be creative in sourcing ideas that align with their investment mandate, while allowing for opportunities to take...
The Macro Forces Shaping the Growth vs. Value Rotation
January 30, 2022Last week, we keyed into the growth vs. value rotation that has kicked off the year 2022 with a bang. Value’s rally and growth’s sell-off through the first two weeks of the year were historically significant and have added fuel to the fire in an already tumultuous environment headlined by macroeconomic conditions.
Navigating the Tails of Growth & Value
January 23, 2022As we continue into earnings season, the markets are throwing curveballs as investors navigate earnings surprises, the fall of tech stocks, and the backdrop of looming Fed action to unwind the US quantitative easing program to combat record inflation. As if that wasn’t enough, the reprise of the growth vs. value rotation is in full swing.
January has seen a growth sell-off and value rally unlike...
Telling a Sector Story of Growth vs. Value
November 14, 2021In 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?
The Battle Between Growth and Value
November 07, 2021Before 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...
Financials: a Hidden Gem for Value Investors?
March 07, 2021Value investing may have spent the last decade on the sidelines of the broader bull market, but Financials are an exception. This week, we pivot back to our spotlight on Wolfe Research’s sector-focused risk models and uncover some astounding factor premia that have been driving the Financials space.As we’ve noted in our recent posts on the Wolfe US Energy and Wolfe US TMT models, sector models...
With Rising Rates Comes a Rebound in Value
February 28, 2021The past few weeks have had investors scratching their heads as we’ve seen rates surging in 2021. Long-term US treasury yields have risen over 50 bps since the end of 2020, with the majority of that rise happening in the past month alone. Coupled with the January retail crowding event and the recent market sell offs that have posed unusual challenges for the typically-soaring tech stocks,...