Higher starting valuations usually lead to lower returns, but the most important part of a bubble is “highly skewed psychology” – and investors remain anchored to sanity.
The index-hugging wall of money can’t break the maths of the market, a new paper argues, but it may exacerbate the “long winter” of small caps and value stocks.
Betting on mega-caps has rarely paid off for active managers, but investors who want exposure to the US market are often forced to take on massive stock specific risk for or against the Magnificent Seven. A mega-cap mean-reversion could be a tailwind once again.
Despite strong fundamentals for the chip king, Research Affiliates says investors are overplaying Nvidia as the ‘safe’ hand in the AI game.
ESG is the “emptiest” idea, according to Aswath Damodaran, while AI will morph into higher costs for companies overall with no competitive advantage in a world where the technology is ubiquitous.
Comparing public and private market performance can be misleading, according to a new study from PGIM, and CIOs need to look deeper into the data.
Mercer has urged investors to consider a wider range of inflation scenarios in portfolio design plans as price uncertainty ramps up across the world. In a new paper, the global multi-manager and consultancy firm says investors now face more complicated decisions amid confusing inflation signals. “Adding a less predictable inflation environment now increases complexity for…
Investors should increase allocations to active management strategies against an increasingly uncertain global backdrop, according to a new Willis Towers Watson (WTW) report. It is a “cyclically fertile ground for alpha.” The WTW analysis, ‘Outlook 2021’, says “skilled active management offers growing value for money, as a number of factors converge to add risk to passive plays.”…
Australian multi-affiliate shop, Apostle Funds Management, will roll-out an exchange-traded fund (ETF) version of a well-established active global equities strategy. According to a release, the soon-to-be-launched Apostle Dundas listed fund will carry a total management fee of 0.9%, “well below the category median” of 1.35%. Karyn West, Apostle managing director, said in the statement that…
Stock markets have always been a win-lose situation, but the odds are skewing even further towards a handful of successful companies, according to a new analysis by Australian-based global manager Hyperion Asset Management. In bad news for value and passive investment styles, the study argues that, historically, only a small proportion of listed companies have…
