Links to articles are for general information purposes only and do not constitute an offer to sell, or a solicitation of an offer to buy, any security. Past performance is no guarantee of future results and diversification does not guarantee investment returns or eliminate the risk of loss. Moreover, wherever there is the potential for profit there is also the possibility of loss. Before embarking on any investment program, an investor should carefully consider the risks and suitability of a strategy based on their own investment objectives and financial position. Any opinions expressed in an article are current only as of the time made and are subject to change without notice. The information contained in an article may include estimates, projections and other “forward –looking statements.” Due to numerous factors, actual events may differ substantially from those presented.
Hal Reynolds Featured in Financial Times
We are pleased to have our CIO, Hal Reynolds, featured in the Financial Times. Hal discusses the health and performance of quantitative strategies, and in particular the influence of the value factor. The full article can be read on the Financial Times' website: https://on.ft.com/3tms0U1
Select Growth Stocks Poised to Outperform in 2021
Despite investor preferences having shifted solidly to value in 2021 thus far, Los Angeles Capital’s Analyst Insight factor, which combines earnings news with estimate revisions and earnings surprise, continues to favor growth stocks which have yet to lose their fundamental momentum. CIO Hal Reynolds weighs in on why we expect both value stocks and a handful of the most successful growth stocks to out-perform over the remainder of 2021.
“Unlike the second half of 2020 when investors embraced riskier stocks despite weak or non-existent earnings, tomorrow’s returns will be driven by changes in a company’s earnings outlook. As the world moves past the pandemic, look for investor focus to return to fundamentals…”
Click here to access the article: Market experts at BlackRock, Principal Global Investors, and LA Capital break down the 6 reasons why tech stocks still have room to run higher — and why fundamentals will matter more than blind risk-taking.
Edelman's Investment Outlook Book for 2021
We are pleased to have our CIO Hal Reynolds featured in Edelman Smithfield’s Investment Outlook Book for 2021. The Outlook Book created by Edelman Smithfield compiles a collection of investor views looking at the trends that will shape the year ahead. In this edition, Hal shares his perspective on value, growth, the vaccine and portfolio positioning. Click here to download a copy of the Outlook book directly from Edelman’s website: https://www.edelman.co.uk/investment-outlook-book-2021. Los Angeles Capital does not endorse the managers, the firms or their opinions in the Outlook book other than those of Hal.
2020 Best Places to Work in Money Management
Los Angeles, CA (Dec. 16, 2020) Los Angeles Capital was recognized in the 2020 Best Places to Work in Money Management awards announced by Pensions & Investments today. Presented by Pensions & Investments, the global news source of money management, ninth-annual survey and recognition program is dedicated to identifying and recognizing the best employers in the money management industry. Click to read the full press release or to access our P&I profile.
Building Covid Resilient Portfolios
Equity markets may have held up remarkably well over the past months, but that should not fool investors into a false sense of security. The risk level is still high and many investors may be wondering just how well their equity portfolios can withstand the unfolding crisis sparked by the spread of Covid-19. In this article from the Nordic Fund Selection Journal, Hal Reynolds, CIO, talks about the insights gained from starting to measure the Covid beta of equity portfolios, bad momentum and the problems of static factor approaches.Click to access Building Covid-resilient Portfolios.
Hedge Fund Investors Ditch Misfiring Quant Trade Losing Billions
As fundamental signals employed by quantitative approaches have struggled to predict the right winners and losers in a pandemic market, quant managers are challenged to increase flexibility in their risk indicators and add short-term signals. CIO Hal Reynolds shares how Los Angeles Capital has risen to the occasion by recently created a dynamic analytical tool (sometimes referred to as a Covid factor) to help capture a company’s sensitivity to macro shocks. Click here to read the article.
Bubble or No Brainer?
The global shift to working from home due to the coronavirus pandemic has led to Technology emerging as a victor in the market. However, there is the question of whether this sector will remain to see long-term benefits as the pandemic subsides. CIO Hal Reynolds weighs in on the digital economy. Click here to read the article: Bubble or No Brainer? Six specialists on the dash to tech.
Five-year gilt yields go negative for the first time in dash for safety
For the first time, the British government was able to raise new money in the gilt market paying a negative interest rate. Further, there is talk of an expansion of quantitative easing program to stimulate the economy and encourage banks to lend. In the article in The Times, LACM CIO Hal Reynolds, weighs in stating “there is no empirical evidence that negative rates are helpful for growth”.
Central Banks, Inflation and Economic Normalisation Post Covid-19
In a livestream entitled Central Banks, Inflation and Economic Normalisation Post Covid-19, CIO Hal Reynolds, provides his outlook on the market and shares themes that he thinks will shape the market in the months ahead. Click here to listen to the May 14, 2020 livestream.
EM Equities: Quant Strategies Closing the Gap
Co-Director of Research, Brad Rowe provides insight into how improvements in the quality and coverage of data has allowed quant managers to catch up to fundamental managers in data on the emerging markets. Click here to read Closing the Gap.
Factor Investing: Keeping a Distance from Single Factors
CIO Hal Reynolds comments on the impact that the shift in the macro environment has had on expected returns, as well as the success of momentum and low volatility strategies over the last decade. Click to access Keeping a Distance from Single Factors.
LACM Joins Climate Action 100+ Initiative
“Los Angeles Capital has joined Climate 100+ in an effort to help strengthen the disclosure of climate-related financial information, as well as to encourage companies to improve the governance of this issue,” says Hal Reynolds, CIO and founding partner of Los Angeles Capital. Click here to read the press release featured in Institutional Asset Manager.
When the Big Get Bigger, Active Stockpickers Feel Even More Pain
The divergence in performance between small and large cap companies is discussed in ‘When the Big Get Bigger, Active Stockpickers Feel Even More Pain’, where Co-Director of Research Ed Rackham comments on recent factor efficacy in larger companies. Click here to access the article: When the Big Get Bigger.
Ahead of the Curve: The Mega-Cap Conundrum
Co-Director of Research Ed Rackham discusses the challenges quants faced in 2019 and the role that mega-cap stocks played. Click here to access the article Ahead of The Curve.
Value Stocks Post Best Run
As stocks begin to show signs of recovering, and investors start to look beyond the short term, CIO Hal Reynolds discusses the firm’s defensive tilt position in “Value Stocks Post Best Run This Century After Fire Sale Ends”. Click here to access the article Value Stocks Post Best Run.
The proof of the Brexit pudding is in the eating
In 'The proof of the Brexit pudding is in the eating', CIO Hal Reynolds discusses the underperformance of UK stocks, as well as the likely catalyst needed in order for UK risk assets to outperform. You can access the full article here: The proof of the Brexit pudding is in the eating.