Quarterly Model Views - 3Q25
In this edition of LACM's Quarterly Model Views, we discuss the advancement of global equity markets, optimism around AI and corporate earnings, evolving macroeconomic risks, and LACM's portfolio positioning.
Insights
Videos
Quarterly Model Views - 2Q25
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.
Quarterly Model Views - 1Q25
In this Quarterly Model Views video, LACM examines heightened policy uncertainty, increased volatility in U.S. markets, and shifting global leadership.
Quarterly Model Views - 4Q24
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.
Quarterly Model Views - 3Q24
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.
Quarterly Model Views - 2Q24
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.
News
Stocks Still Mostly Supported by Big Tech's Fundamentals
In a recent discussion with MarketWatch, LACM’s Hal Reynolds highlighted the role that Big Tech continues to play in supporting the US stock market. While concerns about the broader economic environment remain, new developments in technology and AI are shaping both risks and opportunities for investors.
When Fried Chicken Becomes Part of the AI Boom, It's Time to Worry
The Shiller price-to-earnings ratio has reached levels last seen prior to the dot-com crash, raising concerns about a possible bubble for US stocks. In this article with the Telegraph, Hal Reynolds of LACM notes that while AI-driven bubble concerns are understandable, he believes that today’s market is fundamentally stronger, driven by companies with robust earnings growth and more durable cash flows.
Stocks Get Trump Boost to Close at All-Time Highs
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.
Can Stocks Pull Off a Third Consecutive Year of Big Gains?
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.
How Asset Managers are Getting to Grips with AI
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 Drilling Deeper on ESG as Managers Strengthen their Approaches
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
More Companies Are Selling Shares to Help Cut Debt
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.
Emerging Market Equities, Investors Grapple With Peak Political Risk
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.
NLP Can Help Identify Linkages Between Equity Market Peers
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.