This week we revisit a popular Factor Spotlight topic as we head into the thick of Q2 2021 earnings season. With a market bracing for a procession of earnings announcements, we will explore the various forms of crowding measures to better understand what names are most vulnerable to systematic pressures stemming from concentrated holdings across the investment management landscape. Before we dive in, we would like to offer our readers a complimentary ‘concentration’ analysis of your portfolio. To initiate a portfolio review, please register here.

The focus on improved US infrastructure has lingered at center stage this week, as the business and investment worlds continue to weigh in on the pros and cons of President Biden’s proposed $2 trillion American Jobs Plan. Though the plan has faced much criticism in Congress, there are still ambitious efforts underway to get a clean infrastructure bill passed by the end of the summer.

This past week on March 31, the Biden Administration announced the American Jobs Plan, which proposes a $2 trillion plan to invest in US infrastructure. The plan highlights several areas of public investment designed to address the climate and racial inequities that have arisen in part due to an aging national infrastructure and lack of focus on research & development. If passed, the proposed plan will result in massive investments in transportation infrastructure, clean drinking water, and sustainable housing efforts, to name a few.

In our prior two Factor Spotlights, Who’s Going With the (Momentum) Flow? and Is Momentum Flow Riding the Interest Rate Rollercoaster?, we have explored and analyzed the themes of momentum rotation and interest rates. Based on the many inquiries and portfolio evaluation requests we’ve received since we first published on these topics, we’re encouraged that so many in the investment community are taking proactive steps to manage their exposures to these unprecedented, pandemic-related momentum flows. As a reminder, it’s still not too late to reach out to us for a free portfolio evaluation.

My name is Kevin Wahlberg, Product Specialist at Omega Point, and I’m excited to make my Factor Spotlight debut this week as we continue our series on the impending momentum rotation.

As we wrote in last week’s Factor Spotlight - and as was highlighted in a recent Bloomberg article - a historic, pandemic-related systematic strategy rebalance is expected to lead to a significant momentum rotation over the coming weeks, which has already begun. To help investors better prepare by uncovering the areas of your portfolio at most risk, Omega Point is offering to evaluate your portfolio free of charge. Given the imminency of these market-moving momentum flows, I encourage you to respond to this email asap to secure your portfolio analysis and take proper action.