In this edition of LACM's Quarterly Model Views, we discuss the impressive rebound of global equity markets, the key macro risks shaping equity performance, and Los Angeles Capital's portfolio positioning heading into the new quarter.
In this Quarterly Model Views video, LACM examines heightened policy uncertainty, increased volatility in U.S. markets, and shifting global leadership.
Equities delivered another year of impressive gains in 2024, led once again by large cap US stocks. In this video, LACM discusses the factors that maintained equity markets over the course of the year, and looks ahead into 2025, offering insights from the Firm’s proprietary stock selection model.
In this Quarterly Model Views video, LACM discusses recent volatility-inducing events, investor anticipations of further rate cuts, and the different sources of uncertainty heading into the final months of the year. Entering Q4, LACM's portfolios focus on high-quality businesses with strong margins and cash flow generation, as well as secular growth stories with reasonable valuations.
In this Quarterly Model Views video, LACM reflects on the last quarter and discusses positioning of its Dynamic Alpha Stock Selection Model, as the Firm becomes somewhat more constructive on large caps across the globe, gets slightly cautious on leverage, and leans into profitable structural growth opportunities, albeit with careful consideration of valuations.
Despite expectations of a less dovish Fed, risk assets continue to rally, indicating investors expect the economic backdrop to remain strong and for the earnings outlook to brighten. In this video, LACM discusses key takeaways from Q1 and expectations for Q2, providing insights from Los Angeles Capital’s Dynamic Alpha Stock Selection Model®.
In this post-election Bloomberg article assessing President Trump’s trade policies, LACM’s Co-CIO, Hal Reynolds, discusses the President’s pro-growth measures and what they could mean for equities.
Following another surge in the S&P 500 over the course of 2024, LACM’s Co-CIO, Hal Reynolds, features in this Wall Street Journal article assessing whether another year of robust gains is possible for a stock market that is looking precariously expensive.
The use case for artificial intelligence in asset management is understood, but there are meaningful questions as to what the technology can actually achieve. In this IPE article, Co CIO, Edward Rackham, discusses LACM’s natural language processing-based framework, which identifies linkages between firms that transcend traditional sector classifications.
Investors are increasingly scrutinizing ESG criteria and demanding more detailed and transparent reporting on ESG metrics. In this article with P&I, LACM’s Laina Draeger, Director of Responsible Investing, emphasizes that superficial ESG claims are no longer sufficient, as investors seek verifiable data to support companies' ESG efforts
LACM’s Co-CIO, Hal Reynolds, features in this Bloomberg article, which discusses how companies are using the strength of stock markets to raise equity and take out leverage in the face of much higher borrowing costs after the end of the easy money era.
As billions of people head to the polls in 2024, how will politics influence flows to emerging market equities? LACM’s Co-CIO, Hal Reynolds, features in an article with IPE, discussing how regulatory activity may restrict productivity growth and constitute a cap on earnings growth for emerging market companies.
Artificial Intelligence and Machine Learning models have shown promise in improving forecasting accuracy across a wide range of problems, such as image and speech recognition, text translation, and medical diagnosis. In this feature article with IPE, LACM’s Co-CIOs, Ed Rackham and Hal Reynolds, discuss how Natural Language Processing, a subset of Machine Learning, can help to identify linkages between equity market peers.
The past eight years are an important reminder that the largest companies may dominate for extended periods of time, so how should investors evaluate the dominant competitive positions and fundamental momentum of these companies? In this article with P&I, Hal Reynolds, Co-CIO, and Sidharth Madan, Associate Director, Research, discuss different factors investors may focus on in their search for more consistent active returns.
Growth beat value in the first half of 2023, but will its outperformance last? In a discussion with Institutional Investor, LACM’s Co-CIO and Co-Founder Hal Reynolds offers his thoughts on why better economic conditions are likely required for value to make a sustainable rebound.
Any opinions expressed in this publication are current only as of the time made and are subject to change without notice, and the Firm assumes no duty to update any such statements.
Co-CIO and Co-Founder of LACM Hal Reynolds spoke to the Financial Times about the outlook for the integration of AI technologies across the investment management arena. Machine learning and Natural Language Processing plays a role in LACM’s forward-looking, adaptive process, enabling the Firm to harness investors’ changing expectations as key inputs to its proprietary dynamic model.
