• Weekly Research Briefing:
    Tug of War

    February 19, 2019

    With the S&P 500 now trading at 16 times its 2019 consensus earnings estimate in a declining earnings environment, it is now time for the fundamental valuation anchor to begin to resist the very strong pull of a technical bounce since Christmas.

    READ NOW >
  • Wall Street Mood MonitorTM

    Fourth Quarter 2018

    We gauge Wall Street sentiment by comparing the cumulative upward and downward revisions sell-side analysts make to their corporate earnings estimates. By that measure, the mood has become decidedly sour. While analysts’ outlook has turned sour though, the earnings environment remains positive.

    READ NOW >
  • Defining Alpha...It's Skill Not Excess Return

    Alpha may be a common investment term, but it remains commonly misunderstood. Market observers often define alpha simply as a fund’s outperformance relative to a benchmark. This misconception is not only incorrect, but ignores what alpha truly identifies: manager skill.

     

    READ NOW >
  • Bounded Rationality:
    Tapping Investor Behavior to Source Alpha

    Behavioral biases influence even the most expert investors, and often create a predictable pattern of how future company expectations could evolve.

     

    READ MORE >
  • The New Core Allocation:
    Long/Short Equity

    With equity valuations at elevated levels, subdued economic growth due to changing demographics and stubbornly low productivity gains, as well as a bleak outlook for fixed income, advisors are challenged to rethink foundational portfolio elements of investor portfolios—which means seeking out strategies that bolster the core going forward.

    READ NOW >