Investment Topic: Equities

CA Answers October 2018
Are US Quality Stocks Still Defensive?

Yes, if you control for tech overweights. Quality has historically been quite defensive relative to the broad market. Today, it is sensible to question quality’s defensive characteristics, as the factor is concentrated in tech stocks and has become quite expensive.
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CA Answers November 2017
Is Private Equity Replacing Public Equity?

It sure looks like it. The increasingly unforgiving nature of public equity markets, coupled with the continued evolution and growth of private investment markets, is making it easier for more companies to stay private, with some CEOs avowing to do so indefinitely.
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CA Answers April 2017
Do the Results of the First Round of the French Presidential Election Sound the All Clear for European Risk Assets?

Answers to our clients’ questions about market action and the market environment in a few paragraphs every two weeks. Although the election results provide a powerful “risk-on” catalyst in the short term, the underlying long-term problems facing France and the Eurozone are unlikely to go away under a Macron presidency, so the old adage “sell…
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Research Note November 2016
The Value of ESG Data: Early Evidence for Emerging Markets Equities

Our examination of incorporation of environmental, social, and governance factors into the stock selection process for two major MSCI indexes finds evidence that ESG factors added value in emerging markets equities but not developed markets equities. Given our findings, investors evaluating managers would do well to focus on understanding if and how the manager incorporates ESG factors, for what reason and how consistently, and whether ESG-based stock selection has added value to their funds.
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Research Report September 2015
Constructing Superior Equity Portfolios

A common perception among investors that employ active equity management is that the “donut” structure is more aggressive, more expensive, and riskier than the “core-satellite” structure because of the donut structure’s heavier reliance on concentrated, high tracking error, high fee managers. The research we present in this report, which examines a 17-year period, calls into question these perceptions. Our analysis suggests that, at a minimum, investors should reassess whether a core-satellite structure is as likely to help them earn their payout as a donut structure.
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