In 1992, Morningstar introduced the Style Box™, the now-pervasive nine-square grid that visually depicts the investment style of mutual funds. The goal of the Style Box™ is to aid institutional investors seeking to categorize strategies to meet specific asset-allocation targets.
Todd Hawthorne, the Lead Portfolio Manager of Boston Partners’ Redwood strategy, in an article published by Pensions & Investments, discussed the recent re-introduction of volatility to the U.S. equities market, highlighting that while market fluctuations can wreak havoc on asset allocations, portfolio managers have at their disposal strategies that feed off of and benefit from the growing perception of risk.
Chris Hart, the Portfolio Manager of the Boston Partners Global and International Equity products will discuss our “three circle” approach, which is characterized by the lenses through which we analyze and assess potential investments.
Todd Hawthorne, Lead Portfolio Manager of the Boston Partners' Redwood Strategy, highlights how investors can capture volatility-derived alpha through an alternative strategy that pairs the construct of equity buy/writes with fundamental, bottom-up analysis.
Among public equities, actively managed micro-cap value strategies have traditionally served as a destination for investors seeking attractive risk-adjusted returns. When looking at long-term performance, however, historic trends suggest that micro-cap stocks may actually be better compared to private equity investments.
One of the key decisions that U.S. managers of international stock portfolios face is whether to actively manage currency risk. Those who opt to hedge—typically through derivatives, such as foreign currency forwards—convert the value of shares from the local currencies of overseas markets back to U.S. dollars.
Boston Partners equity portfolio manager Christopher Hart provided commentary to Pensions & Investments through a contributed article that was published in the second week of February. The Article, “Europe Ripe for Active Strategies,” explored the appealing opportunity set that is developing for value-focused investors in the UK and Continental Europe.