As we approach the end of 2024, market volatility persists, with the market narrative frequently shifting in response to new economic data releases. But what does this mean for fixed income markets and portfolio decisions in the fourth quarter of 2024 and beyond?
Market narratives have shifted significantly this year—from excitement surrounding artificial intelligence (AI) to apprehensions about big tech expenditure, and from recession worries to confidence in the resilience of the U.S. economy
Job Posting About Xponance Xponance is a distinguished, woman-led, and entirely employee-owned multi-strategy investment firm dedicated to revolutionizing access to alpha for clients and the wider investment community. Established in 1996 by Tina Byles Williams...
Large Cap companies have dominated their smaller brethren since the end of the Great Financial Crisis in 2008. After the economy started recovering from the crisis in 2009, market leadership was initially powered by small names but as the recovery stabilized, larger names started to gather strength and have been on a tear since. With more than 13 years of large cap leadership on the books, it may be time for a change.
Within low turnover value strategies, we explore how the market conditions at the time of a strategy’s inception can have a lasting impact on its performance for years.
In this update, we begin by reviewing the state of the economy as we enter the second half of the year. We then pivot to discussing the potential impact of Artificial Intelligence (AI) on the Utilities sector and the performance of the Technology sector, driven by ongoing AI trends.
As we reach the midpoint of 2024, the economy grapples with familiar question that has persisted over the past couple of years. When will the substantial increase in interest rates significantly impact economic conditions?
Yield Advantage Intermediate Government/Credit Q2 2024 | June 30, 2024 Read PDF Version Read Commentary Annualized Returns (%) QTD YTD 1 Year 3 Years 5 Years 7 Years 10 Years Since Inception1 Gross of fees 0.74 1.19 5.49 -0.58 1.49 2.04 2.08 3.41 Net of fees...
There is reason to be bullish on Japanese equities, due to market reforms and interventions over the past decade. In this note, we will recap those reforms we see as most relevant for global stock pickers, followed by insights from a selection of our high conviction boutique managers.
As we close the books on the first quarter of 2024, we are once again struck by the contradiction between careful data analysis and changing narratives regarding market direction.
As we enter the second quarter of the year, market participants appear to be performing a balancing act on a tightrope amidst the crosscurrents of the macroeconomic data flow.
Job Posting About Xponance Xponance is a distinguished, woman-led, and employee-owned multi-strategy investment firm dedicated to revolutionizing access to alpha for clients and the wider investment community. Established in 1996 by Tina Byles Williams with AUM of...
Japan had been hiding in the same place where it was last seen in 1989 off the coast of north east China; but apparently while no one was watching (or at least no one in the American financial press) the Japanese stock market’s bell weather index, the Nikkei 225, surpassed its historical high set in 1989.
Press Release PHILADELPHIA, March 19, 2024 – Xponance Alts Solutions (“XAlts”), a subsidiary of Xponance Inc, announced today that it has entered into a strategic partnership with private investment firm The Copia Group (“Copia”). XAlts...
This post builds on the analysis of the 2022 rebalance, examining the S&P 500 Value Index’s December 15, 2023 rebalance to assess trends and methodologies. High turnover and major sector and risk factor exposure shifts can impact both passive and active strategies, potentially increasing costs and requiring careful risk management.
In December 2023 Tina Byles Williams, Founder, CEO and CIO of Xponance, hosted 24 CEOs from among the firm’s currently funded sub-advisors to participate in a roundtable discussion on the most pertinent challenges to emerging and diverse investment management companies.
The failure of the returns-based approach, along with some interesting dynamics observed in factor contributions, opens an extremely interesting avenue for future analysis. What role did the macroeconomic regime (inflation, top line growth, and interest rates) play in the “defensiveness” of strategies, and what can be done to avoid misclassifying strategies during sharp regime changes?
The 4th quarter Treasury and spread rally rescued the broad fixed income market from another year of negative or barely positive (depending on sector) returns. In traditional bond market fashion, however, we find much to worry about with stretched valuations in most of the spread sectors and an uncertain path forward for the economy and interest rates.
Investors’ 2023 New Years’ resolution was apparently to forgive and forget their travails of 2022, as global markets spent 2023 shrugging off the prior years’ anxieties. Excluding emerging East Asia, major global markets have already fully recovered from their losses related to the inflation induced rate cycle kicked off in early 2022.
As 2023 drew to a close, the financial markets began to manifest the early signs of a soft-landing scenario, marked by a robust rally in equity markets in the fourth quarter, showcasing double-digit gains. This period was characterized by broadening of market strength, with notable outperformance by small-cap stocks, heavily shorted names, lower-quality companies, unprofitable tech, and a mix of long-duration, meme, cyclical, and value stocks.
This article offers an incisive look into the factor vetting process, crucial for developing effective stock selection models in finance. It highlights the importance of distinguishing robust factors from mere statistical noise, minimizing multicollinearity, and preventing overfitting to enhance model performance.
In this quarter’s update, we begin by looking at interest rates at the very broadest levels, i.e. Treasury markets and Federal Open Market Committee (FOMC) actions. We then take stock of the fixed income landscape, looking at current market metrics against a historical backdrop.
In recent years, the investment landscape has been significantly influenced by unprecedented monetary and fiscal stimuli, leading investors to focus on changes in inflation. But the front lines for significant government and central banks’ war against inflation have significantly diverged.
The key question going into the final quarter of 2023 and glancing towards 2024, is whether U.S. consumers, that account for roughly two-thirds of its total activity, will continue to keep the economy afloat.
Already responsible for an estimated $5 billion in stimulative consumer spending – the equivalent of the entire annual earnings of Starbucks, American Airlines, or FedEx – the Taylor Swift ‘Eras’ Tour is doing more than its part to save the global economy. However, the economic phenomenon being dubbed ‘Swiftonomics’ will forsake China, as the pop legend’s tour plays four dates in Japan and a record six dates in Singapore, but not in the world’s second largest economy.
Juan Best, CFA Manager Research Analyst, Active Global Equities Juan Best is a Research Analyst on the Manager Research Team at Xponance, having joined the firm in June of 2023. His primary responsibilities include the sourcing and ongoing due diligence of investment...
The ensemble approach, in a broad sense, refers to combining multiple units (which could be models, methods, or components) to work together to achieve more accurate and reliable outcomes than any individual unit could achieve alone. This is akin to making a decision based on the collective wisdom of a diverse group, rather than relying on a single opinion.
Sneha Malakar Junior Quantitative Analyst, U.S. Fixed Income Sneha serves as a Junior Quantitative Analyst in U.S. Fixed Income at Xponance. She is responsible for supporting the portfolio managers with ongoing market surveillance and monitoring weekly economic macro...
The employee in this position will calculate performance, settle trades, update the portfolio accounting system, reconcile account positions, and is responsible for client reports.