Client Advisory | Investment Insights

Frontiers of Quant Are artificial intelligence and alternative data the future of investment management? Will they fundamentally transform the quantitative investment process, providing revolutionary insights that allow managers to tackle previously unanswerable questions? In this talk, we address these questions, separating signal from noise, and describe our vision of the frontiers of quantitative investing.
	Concentrated Equity: Practice Versus Premise Concentrated equity strategies have gained attention from asset owners seeking high conviction active investments, but do they live up to that premise? In this session, we present novel empirical research that addresses this question, and we highlight challenges that concentrated strategies pose for manager selection and portfolio construction. We then contrast concentrated equity strategies with an alternative path to high conviction—systematic extension strategies.
Geopolitics and Markets Although geopolitical risk is omnipresent in investing, there is little systematic research on the relationship between geopolitics and markets. In this talk, we explore how markets react to shocks and process uncertainty. We also demonstrate a novel methodology to help investors measure and manage macro event-related risks that overcomes shortcomings of conventional tools.
	Choppy Waters: Navigating EM and China Allocations in an Era of Uncertainty The investing climate around China has been in flux during recent years, leading many investors to reassess whether and how they should obtain exposure to the country. In this discussion, we offer a structured approach to key questions facing asset owners regarding their EM allocations in relation to China. We consider pros and cons of EM investing based on conventional benchmark definitions as opposed to bifurcating China from the rest of EM, and we highlight key considerations in engineering such allocations.
Are You Ready for the Next Black Swan? Crashes are regular features of markets, and they can have a dramatic impact on long-term total returns. Even so, investors do not consistently factor crash risk into the design of their portfolios. In this session, we’ll compare approaches to preparing for black swans, consider where crash risk exposure may be going unnoticed in portfolios, and examine how premium harvesters might underwrite such risk transparently and efficiently.
	Value Revisited In this talk, we take a provocative look at value. Leveraging our extensive research on the topic, we dispel myths about value’s performance in equity markets around the world, and we consider its outlook afresh. We outline a clear approach to value investing and demonstrate the benefits of nuanced implementation.
Re-Examining Diversification Although diversification is a cornerstone of portfolio theory, it often comes under fire from frustrated investors. In good times, asset owners feel pressure to chase. In bad times, investors may find that strategies promising “uncorrelated return streams” fail to deliver protection. In this talk, we reaffirm the value of diversification while examining why many popular diversifying approaches improve portfolio optics more than economics.
	Alpha, Beta & Volatility: Equity Investing in Turbulent Markets The year 2022 brought dramatic change to the equity investing environment, triggering a wave of volatility as stocks sold off globally. In this presentation, we consider three issues that this market turbulence poses for asset owners. First, we place recent volatility into long-term historical context, analyzing its drivers. Next, we consider whether equity investors are compensated for rising volatility. Finally, we reassess the conventional wisdom that a turbulent environment makes for a “stock picker’s market” and draw inferences for manager selection.