Martin Barraud Markets Review Past performance is not indicative of future results. Aristotle International Equity ADR Composite returns are presented gross and net of investment advisory fees and include the reinvestment of all income. Gross returns will be reduced by fees and other expenses that may be incurred in the management of the account. Net…
Igor Kutyaev/iStock via Getty Images (All MSCI index returns are shown net and in U.S. dollars unless otherwise noted.) Markets Review Sources: CAPS CompositeHubTM, Bloomberg Past performance is not indicative of future results. Aristotle International Equity Composite returns are presented gross and net of investment advisory fees and include the reinvestment of all income. Gross…
Hinterhaus Productions/DigitalVision via Getty Images The Fidelity Magellan ETF (BATS:FMAG) is an actively managed exchange-traded fund that invests across large-cap U.S. stocks. The attraction here is the potential to outperform broad-market indexes, through a fundamentals-based approach, focusing on companies that benefit from long-term “mega-trends”. Indeed, FMAG has been a big winner in this latest bull…
Unlock the Editor’s Digest for free Roula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter. Yield-hungry retail investors piled into highly leveraged US exchange traded funds in April, drawn to volatile markets stoked by uncertainty over the outlook for interest rates. Investors have pushed around $5.2bn into the top 22…
ijeab The momentum factor is on track to end April as it began: the strongest year-to-date performer among US equity factors, based on a set of ETFs through Friday’s close (Apr. 26). In line with the broad market, iShares MSCI USA Momentum Factor ETF (MTUM) has taken a hit in recent weeks after touching a…
Daniel Grizelj Thesis The iShares MSCI EAFE ETF (NYSEARCA:EFA) is an equity exchange-traded fund. The fund represents the main offering for EMEA equities aggregators (Europe, Middle East, and Africa), at a $52 billion AUM. The vehicle seeks to track the investment results of the MSCI EAFE Index, and provides retail investors with overseas equity exposure…
anyaberkut Market Environment And Performance Equity markets had a solid start to the year, with the S&P 500 up 10.6%. The Madison Sustainable Equity Fund lagged the S&P 500 for the first quarter. Although growth stocks continued to lead the market, we did see broader participation in the first quarter rally. Equity markets were encouraged…
z1b It pays to be a contrarian when the chips are down for certain stocks and sectors. While some investors may try to overthink it, value investors may be better served to layer into quality companies when they are out of favor with the market. In the words of Buffett, the market is a voting…
Galeanu Mihai/iStock via Getty Images By Samantha McLemore A Differentiated View on Diversification “It is not the strongest of the species that survives, nor the most intelligent that survives. It is the one that is most adaptable to change.” – Misquote by Charles Darwin Patient Opportunity Equity strategy advanced 11.8% net of fees in the…
Torsten Asmus Listen below or on the go on Apple Podcasts and Spotify Yimin Xu of Cestrian Capital Research on past easing cycles, strong economic data and Fed rate cuts (0:40). Sticky inflation and bond market equilibrium (2:30). Attractive 10-year yields (5:00). This is an abridged conversation from Seeking Alpha’s Investing Experts podcast. Transcript Rena…
Donny DBM/iStock via Getty Images By Reed Cassady, CFA, Sam Peters, CFA, & Jean Yu, CFA The Internal Engine of Returns Market Overview We have previously written about how a lifetime of being a pilot can influence how one approaches portfolio management. The basic principle of flying is to generate lift, while the basic principle…
Khanchit Khirisutchalual Quarter and Calendar-Year Review The Oakmark Equity and Income Fund (MUTF:OAKBX) (“the Fund”) returned 4.92% during the first quarter, compared to 5.15% for the Lipper Balanced Fund Index. This was driven by an 8.53% return on our equity portfolio, which lagged the S&P 500 Index of 10.56%1. This was partly due to an…
MSRPhoto Investment Thesis At first glance, Medical Properties Trust (NYSE:MPW) seems like an undervalued dividend pick. It owns and leases 420 hospitals/clinics under “triple-net” contracts that pass all property-related costs (and responsibilities) to its 54 tenants, allowing it to run an impressive $18.3 billion portfolio with only 131 employees. As a REIT, it distributes most…
Trevor Williams Navigating market highs and (avoiding) value traps Last quarter, the S&P 500 Index hit a new high every month, as did each of our U.S. Funds. In March, I wrote a piece for our website discussing why new highs are important to us. On one of the recent new high days, I heard…
tadamichi By Seema Shah, Chief Global Strategist Global equity valuations are stretched, characterized by the U.S., Europe and Japan all sitting at or near record highs. However, amidst the elevated valuations, pockets of opportunity are emerging – especially within U.S. small-caps, buoyed by favorable economic conditions, and in Latin America, where compelling valuations align with…
We Are By Nelson Yu With inflation and interest rates in transition, it’s time to take a fresh look at the forces driving business models, profitability and equity returns. Equity investors are struggling to adapt to evolving market and macroeconomic conditions after years of low inflation and zero interest rate policies. Overcoming higher hurdles to…
DKosig We always arrive at work on an Inflation Day with a certain amount of uncertainty hovering over us. When the CPI or the PCE report – the two main indicators of US consumer price trends – comes out at 8:30 a.m. it has the potential to sharply shift market sentiment away from whatever direction…
Sundry Photography Over a year ago, I published “U.S. Bancorp: Net Interest Margin Compression Could Quickly Erase Profits This Year.” At that time, I had a bearish view on U.S. Bancorp (NYSE:USB) under the view that its moderately high leverage combined with rising deposit rates would cause its NIM to compress, causing the company to…
sasirin pamai Written by Nick Ackerman, co-produced by Stanford Chemist. Eaton Vance has a number of equity closed-end funds that all have similar names. It can be quite difficult to tell what each fund is specifically looking at from their names alone. There are some clues, such as including “global” in the names or whether…
selamiozalp Rock-Solid Alpha Generation The iShares MSCI India Small-Cap ETF (BATS:SMIN) is an $800m sized ETF that covers close to 500 small-cap stocks in India. Note that over the past year, this has proven to be one of the stellar equity pockets across the world, generating returns of over 40%, also translating to 10x the…
Drew Angerer/Getty Images News On March 5, 2024, SoFi Technologies (NASDAQ:SOFI) announced to the market a $750 million Convertible Senior Notes Offering (due 2029). The notes will pay interest at a rate of 1.25% and the conversion price is set at $9.45 (30% above SOFI closing price of $7.27). To mitigate the potential dilution impact,…
Iryna Drozd/iStock via Getty Images Investors in The Schwab U.S. Dividend Equity ETF (NYSEARCA:SCHD), who picked its steep pullback in October/November 2023, have done relatively well, as SCHD bottomed out resoundingly. I also urged investors to buy SCHD aggressively in November, assessing the ETF as a prime beneficiary in a further recovery as pessimism likely…
JamesBrey All values are in CAD unless noted otherwise. The ownership of this stock is generally restricted to Canadians. If you are wondering “What Is That Aboot?”, you can read more here. In our last coverage of Alaris Equity Partners Income Trust (TSX:AD.UN:CA), we made the case that this was severely mispriced and the big…
Just_Super Markets Review (All MSCI index returns are shown net and in U.S. dollars unless otherwise noted.) Sources: CAPS CompositeHubTM, Bloomberg Past performance is not indicative of future results. Aristotle International Equity Composite returns are presented gross and net of investment advisory fees and include the reinvestment of all income. Gross returns will be reduced…
MicroStockHub Markets Review (All MSCI index returns are shown net and in U.S. dollars unless otherwise noted.) Sources: CAPS CompositeHubTM, Bloomberg Past performance is not indicative of future results. Aristotle International Equity Composite returns are presented gross and net of investment advisory fees and include the reinvestment of all income. Gross returns will be reduced…
Jinda Noipho/iStock via Getty Images By Garey J. Aitken, CFA, & Timothy W. Caulfield, CFA Market Overview The S&P/TSX Composite Total Return Index returned 8.1% in the fourth quarter. Benchmark 10-year interest rates in Canada and the U.S. reached 2023 highs of 4.24% and 4.99%, respectively, in October before ultimately giving way in the final…
JEFF KOWALSKY/AFP via Getty Images Stellantis (NYSE:STLA) stock is trading higher after the automaker reported strong Q4 and FY 2023 results, while highlighting a commitment to achieve “at least a double-digit adjusted operating income margin in 2024”, on a €190+ billion topline expectations. In addition, Stellantis management delighted with the projection to distribute a yield-rich…
TERADAT SANTIVIVUT By Raffaele Savi and Jeff Shen, PhD As we look ahead, our systematic analysis continues to support the case for an eventual “soft landing” economic scenario, where inflation falls to central bank targets without causing a recession. But the macroeconomic and market backdrop isn’t without uncertainty, and there are several unknowns facing equity…
Tanankorn Pilong/iStock via Getty Images By Erin Bigley, CFA, Chief Responsibility Officer; Kent Hargis, PhD, Chief Investment Officer – Strategic Core Equities, Portfolio Manager – Global Low Carbon Strategy; and David Wheeler, CFA, Portfolio Manager – Sustainable Climate Solutions, Senior Research Analyst – Sustainable Thematic Equities Transcript Erin Bigley: There are several different ways you…
Thai Liang Lim By Indrani De, CFA, PRM, Global Investment Research and Catherine Yoshimoto, Director, Product Management The Russell 1000 and Russell 2000 indexes (‘R1’ and ‘R2’) have mapped the US equity market successfully for four decades. But did you know the R1 gives you significant investment exposure to the global economy as well? US…
SOPA Images/LightRocket via Getty Images Last year was a tough one for Ørsted A/S (OTCPK:DNNGY), which saw massive impairments of roughly $4 billion on its Ocean Wind United States projects. This was the result of a decision to cancel them, due to several factors including high inflation, rising interest rates, and supply chain issues that…
franckreporter Investment briefing With the global risk appetite now showing signs of imminent recovery based on recent market trends, there is potential scope to add beta back into equity portfolios in our estimation. The consumer discretionary sector has led the way along with communications services and utilities so far in Q4 2023 earnings growth for…
Henrik5000 By Michael Barclay How does a high-rate environment affect dividend investing? Senior Portfolio Manager Mike Barclay explains how dividend-paying stocks may be affected by a higher interest rate environment and identifies areas of opportunity. Transcript During 2023, the higher rate environment was a source of competition for the equity income category. While it’s great…
Dilok Klaisataporn The Large Cap Equity Fund’s Institutional Class returned +10.91% for the fourth quarter compared to +11.96% for the Russell 1000. For the calendar year, the Fund’s Institutional Class returned +29.81% compared to +26.53% for the Russell 1000. It was a strong finish to a very good year. The economy has been resilient, and…
da-kuk Investors were net sellers of fund assets (including those of conventional funds and ETFs) for the second week in three, redeeming a net $6.6 billion for the LSEG Lipper fund-flows week ended Wednesday, January 24, 2024. Fund investors were net purchasers of fixed income funds (+$3.9 billion), commodity funds (+$220 million), and alternatives funds…
Igor Kutyaev/iStock via Getty Images By Samantha McLemore “The big money is not in the buying and selling, but in the waiting.” Charlie Munger In this letter, we discuss the current environment and how we are responding. We also reflect on 2023: what we’ve done well and where we made mistakes. Before we get to…
Andrii Yalanskyi/iStock via Getty Images By Kent Hargis, PhD | Brian Holland, CFA | Ian McNaugher, CFA Defensive equity strategies that limit downside losses but lag too much in up-markets may be missing the mark. Is there another way to reduce volatility? Market volatility can shake the resolve of even the most patient investors. But…
Julia_Albul/iStock via Getty Images The Role of Low Volatility Strategies in Investment Portfolios Low volatility equity strategies appeal to investors for many reasons. First, they help keep our portfolios invested in equities during periods of market turmoil. Second, when well-constructed, they often exhibit higher risk-adjusted returns than their higher volatility counterparts. While general surveys of…
Evkaz/iStock via Getty Images From August 1st to October 26th, the MSCI EAFE Index suffered a nearly 11% correction, led by interest rates worries, geopolitical risks and mediocre third-quarter corporate earnings. November was a different story. Improving inflation data for October and dovish comments from central banks spurred on a 9.30% rally in the MSCI…
Andrey Grigoriev Non-U.S. equities, including emerging markets (EM) equities, are likely beneficiaries of falling interest rates in the United States and the dollar weakening rather than strengthening, potentially paving the way for a good year for global equities. Global Markets—Far From Smooth, but Surpassing Expectations Albeit far from smooth, global markets surpassed expectations in 2023….
Pgiam/iStock via Getty Images The J.P. Morgan Guide to the Markets is exactly what it says on the tin: a comprehensive, in-depth guide to global investment markets. It includes a treasure trove of quantitative information regarding U.S. and international equities, bonds, and other investment securities, as well as broader macroeconomic conditions. The guide includes detailed…
Andrii Yalanskyi/iStock via Getty Images Thesis General American Investors (GAM) is an equity CEF. We have covered this name before here, when we assigned it a ‘Hold’ rating based on its intrinsic characteristics. We are revisiting this name based on a very interesting development in the market this past year: most equity CEFs tracking the…
kadmy/iStock via Getty Images I last wrote at Seeking Alpha about one of the most popular cannabis stocks in the world, Canopy Growth (NASDAQ:CGC) almost a year ago in late January, calling it not a good stock for cannabis investors. The stock has declined 82.6% since then, and this is a lot more than the…
Dragon Claws By Tom Roseen Investors were net sellers of fund assets (including those of conventional funds and ETFs) for the first week in three, redeeming a net $2.1 billion for the LSEG Lipper fund flows week ended Wednesday, January 10, 2024. Fund investors were net purchasers of fixed income funds (+$5.5 billion) and money…
LumiNola Dear Fellow Investor, This is the fourteenth annual letter to owners of Fundsmith Equity Fund (‘Fund’). The table below shows performance figures for the last calendar year and the cumulative and annualised performance since inception on 1st November 2010 and various comparators. % Total Return 1st Jan to 31st Dec 2023 Inception to 31st…
ardasavasciogullari Smart Beta ETFs are a type of investment fund that uses alternative index construction rules instead of the traditional market capitalization-weighted indices. Smart Beta strategies seek to passively follow indices while also taking advantage of certain active investment strategies to improve returns, manage risks, or increase diversification. Smart Beta ETFs are becoming increasingly popular…
Nature, food, landscape, travel Shares of Equity LifeStyle Properties (NYSE:ELS) have lagged the broader market this year, gaining just 8%, but they have outperformed many real estate stocks with most apartment REITs, for instance, posting losses. With its unique business model and asset mix, ELS has significantly outperformed the national rent slowdown in 2023. While…
deepblue4you By Alejandro Saltiel, CFA The current valuation of the S&P 500 Index (SP500, SPX) is at 20 times forward earnings. The below chart, taken from WisdomTree’s Daily Market Snapshot, shows this is above the 30-year median but still within 1 standard deviation. Our Senior Economist, Jeremy Siegel, has written that 20 times forward earnings…
tamara_kulikova VanEck Morningstar Wide Moat ETF (BATS:MOAT) is one my very favorite diversified US large cap ETFs. It invests in companies judged to have wide moats, which means they have, as Van Eck says, “sustainable competitive advantages” that distinguish them from other companies. The ability to maintain that status in good and bad markets alike…
spawns Introduction Headquartered in England, Argo Blockchain plc (NASDAQ:ARBK) (“Argo“) is a middling player in the global cryptocurrency mining industry. With the recent rise in Bitcoin (BTC-USD) (“Bitcoin“), however, the stock price is up roughly 200% year to date. While I have little interest in the stock, I find Argo’s 8.75% Senior Notes due 2026…