From Our Blog
With Rising Rates Comes a Rebound in Value
Feb 28, 2021 8:00:00 AM
The past few weeks have had investors scratching their heads as we’ve seen rates surging in 2021. Long-term US treasury yields have risen over 50 bps since the end of 2020, with the majority of that rise happening in the past month alone. Coupled with the January retail crowding event and the recent market sell offs that have posed unusual challenges for the typically-soaring tech stocks, investors are likely wondering what might be causing this tumult.
An Energy-First View of the World
Feb 21, 2021 8:00:00 AM
Before we kick off this week’s edition, we’d like to take a brief moment to send our thoughts and wishes to the millions of Texans, which include our customers and several members of Omega Point’s team, who are struggling with freezing temperatures, power outages and disrupted water service. This is a crisis of epic proportions, especially to those most vulnerable, and it is our hope that yesterday’s disaster declaration by President Biden will expedite financial aid and temporary housing to ease the burdens of those who are suffering.
Illuminating the Dynamics of Technology, Media and Telecom
Feb 14, 2021 8:00:00 AM
In last week’s Factor Spotlight, we discussed the merits of using sector models as an additional lens for understanding risk in your portfolio. Broad market models are very helpful to establish a baseline for risk in the portfolio relative to the overall market; however, sector models can ‘tune’ the factors more accurately to the unique market behavior of each sector. This week, we’re going to dive into the Wolfe Research QES US Technology, Media, and Telecom (“Wolfe US TMT”) risk model to see what blind spots we can uncover compared to using a broad market risk model.
Adding A Sector Lens: Introducing the Wolfe Research Sector Models
Feb 7, 2021 8:00:00 AM
We are thrilled to announce that we have added several highly anticipated Risk Models from Wolfe Research to the Omega Point platform that will help enhance performance/risk analysis, portfolio construction, and precision basket hedging. The Wolfe Sector models now available include:
- Energy
- Consumers (Discretionary + Staples)
- Technology, Media, and Telecom (TMT)
- Healthcare
- Industrials & Materials
- Financials
Are You Prepared for the Next Short Squeeze?
Jan 31, 2021 8:00:00 AM
This week’s tumultuous markets showed us the power of the crowd, even when the crowd is an untraditional one. Retail investor sentiment has caused pain in the short seller’s market before, but the past week saw market movement at unprecedented levels in recent times, as evidenced by the massive trading volumes on the NYSE and NASDAQ. Could the pain caused in institutional investor portfolios have been avoided if there was more transparency into investor crowding, and particularly into retail investor crowding? The answer is very likely, yes.