No. We continue to advise small overweights to Asia ex Japan or emerging Asia relative to US equities, but would not suggest investors add more substantial overweights unless they have an exceptionally long time horizon and the ability to tolerate substantial volatility. The risks to emerging markets are well known. Commodity weakness, a slowdown in…
The Saudi equity market is closer to presenting an interesting opportunity for international investors than this time last year.
Emerging markets equities have tested investors’ patience in recent years, but those with a long time horizon should maintain their overweights, as today’s exceptionally low valuations should pay off in higher returns
UK large-cap stocks are undervalued, but lack a clear near-term catalyst to unlock this value; mid-cap valuations are moving higher, but so too are earnings.
This chart book presents representative marketable and hedge fund manager performance for second quarter 2015.
Both the strengthening US dollar and decline in oil prices impacted markets in fiscal year 2015. The year also witnessed a number of reversals, namely strong performance in the second half of the year relative to the first. This brief chart book looks at returns and other market metrics for fiscal year 2015.
We are not unconditional advocates for or against active management; investors have different circumstances. However, while there are many logical rationales for favoring index over active investing, the recent performance struggle of the average active manager is not among them.
Conviction in Equity Investing Mike Sebastian and Sudhakar Attaluri, The Journal of Portfolio Management, Summer 2014 Active management helps improve market efficiency through the identification of mispriced securities, but often the benefits do not accrue to individual investors. To maximize returns after fees, the authors argue that investors should either allocate to high conviction managers—measured…
Executive Summary A common perception among investors that employ active equity management is that the “donut” structure—an all-active manager structure often composed of four or more high conviction managers—is more aggressive, more expensive, and riskier than the “core-satellite” structure—which blends active and passive management by adding a large passive core component to the donut—because of…
Valuations, fundamentals, and a more appealing macro picture make tilting emerging markets equity exposure toward Asia a sensible proposition.