From Our Blog
Is there ESG Awareness in Alpha-Driven Stocks?
Jan 17, 2021 8:00:00 AM
With the inauguration of the 46th US president just days away, there has never been a riper time for the fruit of socially responsible investing. President-Elect Biden has promised to directly address the environmental, social, and governance issues that are bound to plague society if left with no focused intervention.
Alpha's DNA Through the Lens of Alternative Factors
Jan 10, 2021 8:00:00 AM
If there is one thing that 2020 has taught us, it is to expect the unexpected. The tragic events that unfolded at the Capitol building this past Wednesday were no exception, and our hearts go out to the families who lost their loved ones. We can only hope that the path ahead is now a little more stable.
In last week’s Factor Spotlight, we discussed the concept of an alpha-driven stock and looked to find insights based on the median factor exposures of these stocks compared to the broad Russell 3000 universe. We confirmed an obvious conclusion that alpha opportunity deteriorated during the crisis-driven 2020 period and also highlighted key exposures of this group of stocks for traditional style factors.
Where's the Alpha? Characteristics of Alpha-Driven Stocks in 2020
Jan 4, 2021 12:45:26 PM
Happy New Year from the Omega Point family! While 2020 was a challenging year for many, we hope that the holidays provided a much needed reset to start 2021 off fresh.
Sometimes the best way to start a new year is to reflect on behaviors and trends from the prior year. With this in mind, we are kicking off our inaugural article for this year by reviewing the qualities associated stocks whose risk in 2020 was “alpha-driven“. We expect that this insight will not only help investors learn from the past year, but also will provide some direction for where research should be prioritized going forward.
2020 Holiday Wrappings
Dec 20, 2020 8:00:00 AM
We finally arrive at the 48th and penultimate issue of Factor Spotlight for what has been quite a surreal and calamitous 2020.
All of us at Omega Point would like to wish you and your loved ones a very Happy Holiday season and a peaceful and prosperous New Year.
Much Ado About Value
Dec 13, 2020 8:00:00 AM
|
Last week, we highlighted that the growth vs value spread has recently hit a high point since 2005, which led us to dive deeper into what might be causing this trend. We used the J.P. Morgan iDex U.S. Growth Index and J.P. Morgan iDex U.S. Value Index, which are much purer representations of growth and value than standard style indices, and found that the beta profile of these investment styles has changed significantly over the past year. We also found that the levels of idiosyncratic risk in these areas may indicate a possible growth vs. value rotation or, maybe even more importantly, that the time has come again for high stock picking opportunities in the value space. |