• 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.

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  • 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.

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  • 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.


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  • 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.


  • 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.

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