“Balance and reasonable portfolio expectations are prudent approaches to the end of the pandemic and the beginning of a bull market for society.”
–Joe Terranova, Chief Market Strategist, Virtus Investment Partners
Higher quality small-cap companies lagged their lower quality peers in February, extending a trend that began in November. Despite recent low quality outperformance, higher quality small-cap stocks have delivered better risk-adjusted returns over the last 30 years.
Emerging-market economies have changed dramatically over the last 10-12 years. The MSCI Emerging Markets Index has reflected this shift, illustrating a potential unintended consequence of investing through a broad, market-cap weighted index—a dynamic that active managers have the ability to mitigate.
Chinese equities can offer an exciting and dynamic opportunity, but investors must navigate a complex regulatory environment and quickly changing competitive dynamics. In Vontobel’s view, challenges in China’s A-shares universe – shorter track records and limited transparency – can be managed. Learn how Vontobel’s research helps uncover high-quality companies in China with enduring profitability and growth.
“At even strength, the game is still winnable, but it has gotten a little harder to score a goal.’”
–Joe Terranova, Chief Market Strategist, Virtus Investment Partners
Between chronic low rates, wariness about owning equities, rising inflation, and longer life expectancy, investors planning for retirement may want to make an income and growth fund a core holding.
Convertible securities historically have provided returns competitive with equities, but with lower volatility.
“Risk will be the most important word for investing in 2021. Consider ‘How much can I lose?’ before asking ‘How much can I gain?’”
–Joe Terranova, Chief Market Strategist, Virtus Investment Partners
Four Virtus investment partners offer their perspectives on the dramatic change emerging markets have undergone over the last 10-12 years.
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.
Julie Biel, KAR portfolio manager and senior research analyst at Kayne Anderson Rudnick, discusses the small-cap rally and high-quality companies that offer long-term opportunities for growth in the mid-cap space, including domain-specific vertical software names.
Some of today’s high-flying stocks have disproportionately benefited from a fall in interest rates. Others include “story” stocks whose business models are yet unproven. Vontobel Asset Management separates fact from fiction to help investors prepare for a rainy day.
Why investors concerned about frothy stock valuations and volatility may want to consider equity alternatives like convertible and high yield bonds.
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.
“The defining event for risk assets in 2020 was the introduction of a fiscal, monetary, and healthcare ‘mosaic of coordination’ in response to the COVID-19 ‘crisis of preservation.’”
–Joe Terranova, Chief Market Strategist, Virtus Investment Partners
“In 2020, the markets gave us all an opportunity to become better investors.”
– Joe Terranova, Chief Market Strategist, Virtus Investment Partners
Frank Ossino, senior portfolio manager and sector head of the bank loan asset class at Newfleet, discusses prospects for bank loans heading into 2021.
Obsession with liquidity via money market funds comes at a price, which is why investors may want to consider short- and ultra short-term bond funds with higher yields as rates stay lower for longer.
Consider the improving fundamentals, modestly positive technicals, and favorable valuations that offer a historically attractive entry point.
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.
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.
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.
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.
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.