Alpha Trends & New Investment Ideas
A Radical Proposal for a Square Root Recovery: Don't Forget the Right Tail
Amid nervous markets, BNY Mellon's ISSG commentators warn that investors focused exclusively on downside risk might be selling cheap assets to buy expensive ones, while foregoing possible upside opportunities.
The Power of Expectations: Aligning Asset Allocation with Macro Regime Changes
Private equity specialists from Siguler Guff discuss historic opportunities in distressed debt, as the unwinding of the huge debt overhang in advanced economies is leading to pockets of forced selling at depressed valuations.
Private Market Opportunities in Distressed Debt
Private equity specialists from Siguler Guff discuss historic opportunities in distressed debt, as the unwinding of the huge debt overhang in advanced economies is leading to pockets of forced selling at depressed valuations.
Real-Return Investing in a Volatile World
Amid heightened volatility, Newton argues real return strategies have greater flexibility and range than benchmark-constrained approaches to seek opportunities across asset classes and regions as conditions change.
The Great Recapitalization: Maturing Mortgage Debt Wave Creates Value Opportunities
Urdang discusses historic opportunities in the commercial real estate market as about $1.7 trillion in debt is set to mature over the next four years, with property value declines and high delinquency rates in CMBS creating potentially attractive buying opportunities.
Emerging Markets Local Currency Debt: Capitalizing on Improved Sovereign Fundamentals
Standish makes the case for investing in local currency emerging market bonds, citing improved sovereign fundamentals, diversification benefits and the potential for generating equity-like returns without taking on direct equity risk.
Investing in Debt: Opportunities in Secured Bank Loans
Alcentra make the case for investing in secured bank loans, arguing that the highest new issue credit spreads and strongest deal structures in over a decade offer historic opportunities to seek absolute returns in high single digits.
Fixed Income Absolute Return Amid Sovereign Debt Uncertainty
Paul Brain, Newton's investment leader for fixed income, and Colm McDonagh, head of emerging market fixed income at Insight, discuss the potential benefits of fixed income absolute return approaches against the backdrop of low interest rates, heightened market volatility, and sovereign debt concerns.
The Case for Active U.S. Large Cap Value Equities
Investment professionals from The Boston Company argue that attractive valuations and improving company fundamentals are creating a positive environment for investing in U.S. large cap value stocks, after the asset class was out of favor for the past few years.
Trading Benchmark Choice and Transition Management Performance Attribution
BNY Mellon Beta Management examines the implicit costs involved in changing the asset allocation of a portfolio or switching asset managers in a paper first published in the Journal of Investing.
Expanding the Opportunity Set: Total EM Investing
Alexander Kozhemiakin of Standish and Sean Fitzgibbon of TBCAM discuss the potential risk and return benefits of expanding country diversification in emerging markets investing by combining exposures to equity, bond and currency markets in a holistic approach.
The Power of Dividends: Global Income Equity Investing
Amid modest return expectations for most major asset classes, James Harries of Newton discusses why investors are rediscovering the potential power of reinvested dividends as an important part of the pursuit of long-term total returns. Focusing on dividend yields, he says, can also be a useful barometer for identifying outperforming companies with efficient capital allocation and cash flow management.
Investing in Debt: Opportunities in Leveraged Loans
The Merits of Active Investment Management
Cracking the Commodities Code: A Fundamental Approach to Harvesting Alpha Opportunities
Mellon Capital has developed a systematic, fundamental approach to commodities investing that they believecan enhance the attractiveness of the asset class while mitigating its drawbacks.