Asset allocators use mean-variance models to optimize their portfolios and, in the case of public markets, use asset class proxies as a starting point. For small cap equities these proxies are well-known indices such as the Russell 2000 or the MSCI EAFE or Global Small Cap indices. What we will show in this installment is […]
View ArticleThe S&P 500 has outperformed most other passive investment indices and active managers. The S&P 500 has held on to its best performers and let their winners run. The biggest winners of the decade, such as Apple, Microsoft, Amazon, Nvidia and Google, now make up greater than 20% of the S&P index and drive a […]
View ArticleThe integration of Environmental, Social, and Governance (ESG) factors into investment decisions has rapidly become standard practice for most institutional asset managers. Notably, in just a few years, our conversations with consultants and asset allocators have moved from being asked if we incorporate ESG into our process, to how. It’s always an enriching discussion because […]
View ArticleAs asset allocators move to diversify, de-risk or set up portfolios for the next market cycle, many are now discovering the untapped universe of international small-caps. The asset class routinely outperforms its large-cap siblings, with risk and volatility levels much lower than commonly believed. The challenge is how to participate given the shortage of core […]
View ArticleThe bull market that began March 9, 2009 is officially over. As we look back at the last cycle and those before, it becomes apparent that a considerable amount of alpha is generated in the early months and years of a developing cycle. Capital allocators tend to stay defensive through and out of a market […]
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