Over 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...
Over 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...
Last 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.
As 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...
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?
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...
Value 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...
The 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,...
