Quality businesses have an unmistakable profile: durable earnings growth, high return on capital, strong balance sheets and cash flows, and management acumen at maintaining a competitive advantage. These attributes sound attractive, but do they really make a difference? Kayne Anderson Rudnick (KAR) believes they do.
Sustainable Growth Advisers (SGA) believes Environmental, Social and Governance (ESG) factors have a meaningful impact on a company’s ability to generate long-term sustainable growth. This article discusses why the firm relies on its own informed judgment in determining the factors that contribute to ESG scores rather than rely on ESG ratings from third party research providers.
“Overall, $90 trillion in global liquidity and an investable asset supply-demand imbalance
supersedes the presidential election outcome in importance for long-term investors.”
– Joe Terranova, Chief Market Strategist, Virtus Investment Partners
Kayne Anderson Rudnick CIO Doug Foreman offers insights on the firm’s high-quality investment approach and performance of the Virtus KAR Mid-Cap Growth Fund, including companies that have benefited from trends accelerated by the COVID-19 pandemic.
Contrary to recent commentary in the financial press, we believe that gold and U.S. Treasuries can both perform well at the same time as gold is rallying due to negative real rates, among other things.
Explore the key attributes of mid-cap investing and the opportunities offered to investors, and use our interactive tool to see how an allocation to mid-caps may improve an equity portfolio’s performance and mitigate risk over time.
Ryan Jungk, Investment Grade Corporate Sector Manager, discusses why he believes the rally in investment grade spreads may not be over and may be on the path to set new record lows.
Fallen angels are multiplying exponentially. The best time to buy such bonds at attractive levels, in our view, is just before they get downgraded, since some high yield managers can’t buy investment grade.
Negative headlines notwithstanding, active managers of senior loans with long-term records of strong risk-adjusted returns have shown they can weather historic volatility and economic uncertainty.
Newfleet Asset Management provides their most recent insights on the current market environment.
Frank Ossino, Senior Portfolio Manager and Bank Loan Sector Head, discusses the impact of the coronavirus on the bank loan market and how portfolios are being positioned.
Active management and credit selection have never been more important, says Newfleet President and CIO David Albrycht.
We know that the outbreak of the coronavirus (COVID-19) is going to disrupt supply chains, reduce demand as well as slow economic activity and growth. All of these factors will have an impact on inflation.
As coronavirus fears rattle global markets, SGA remains focused on identifying sustainable growth businesses that can weather the storm and generate attractive revenue and earnings growth on a long-term basis.
Kayne Anderson Rudnick weighs in on the coronavirus situation, including a look back at the 2002-2003 SARS epidemic for insight on the longer-term economic impact.
“The active managers that are going to be successful on a long-term basis…can truly stand out in a crowd.”
The high yield market continues to offer a compelling opportunity to investors.
Newfleet President and CIO David Albrycht discusses relative value opportunities in the bond market and why active management is so important.
The Virtus KAR Small-Cap Growth Fund is the subject of a Reuters feature highlighting the Fund’s strong performance over the last decade relative to all other stock mutual funds. Though currently closed to new investors, the fund remains open to defined contribution and defined benefit plans. Read the article for insights from the portfolio managers, Todd Beiley and Jon Christensen, who manage several small- and mid-cap portfolios at Kayne Anderson Rudnick.
Frank Ossino, senior portfolio manager and sector head of the bank loan asset class at Newfleet, discusses prospects for bank loans heading into 2020.
Amid growing uncertainty, investors have shown greater interest in bond funds but must contend with a variety of risks as central banks around the world continue to implement unprecedented negative rate policies and the Federal Reserve remains accommodative. Here’s a guide to why active management matters.
A structurally flawed benchmark index has proven a fertile ground for active managers.
After the FOMC cut rates, Fed Chair Powell said nope to NIRP (negative interest rate policy). But a return to ZIRP (zero interest rate policy) and more QE/forward guidance seem inevitable.
The ten-year U.S. Treasury note yield recently fell below that of the two-year note for the first time since 2007. Should the yield curve stay inverted for an extended period, it is clearly a negative development for economic growth. Kayne Anderson Rudnick (KAR) believes the yield curve tends to be a more accurate forecasting tool than many economists or Wall Street strategists, and should prompt the Fed to extend rate cuts.
Seix Investment Advisors discusses China’s ability to deliver solid economic growth in the coming months in order to prevent a further global slowdown in 2019 and beyond.
With inflation a growing concern, retirement investors may wish to consider an allocation to non-traditional inflation hedges like high yield bonds and leveraged loans which offer little to lower duration risk, respectively, and a low correlation to investment grade bonds, as well as other benefits.