31.05.2018
A Global Approach to Long/Short Investing May 2018

Even after a five year run up in the U.S. equity markets, many investors still have ample memories of the financial crisis of 2008. Investors are uncertain of where to invest that will offer some protection against market volatility and also mitigate drawdown risk. As a result, “liquid alternatives” have seen tremendous asset flows.

Finding Alpha with Active Managers

Many investors are convinced that alpha has disappeared from U.S. equity markets and prefer to use passive investment tools such as exchange traded funds (ETFs) to broadly gain exposure to these markets. The problem with this approach is that it gives up any chance of outperformance and forces an investor to settle for benchmark returns minus fees.

29.11.2016
Active Management: Revisiting the Publicized Merits of Concentrated Portfolio Construction

For the past few years, the passive versus active debate has been characterized as a pitched battle between two sides. Upon closer inspection, however, some might recognize that this ongoing argument is far more nuanced than it appears at first blush and actually involves multiple sides with somewhat vague allegiances.

09.09.2016
Active Alpha: Capturing Idiosyncratic Risk

A search on LexisNexis, scanning just the past 12 months, will return well over 3,000 news articles, all focused on the active-versus-passive debate that has come to define today's investment landscape. The arguments are all pretty much the same, with proponents of passive strategies keying in on the themes of lower costs and comparable performance, while those defending active strategies will underscore the value of a hands-on approach in a sideways or downward moving market.

01.06.2016
Boston Partners Global Equity: Opening up the Opportunity Set

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.

02.12.2015
Recognizing Volatility as a Discrete and Uncorrelated Asset Class

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.

31.05.2015
Micro-Cap Stocks: An Overlooked Alternative to Private Equity

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.

19.05.2015
Certain Costs, Uncertain Benefits: The Case Against Hedging Currency Exposure

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.

01.05.2014
A Global Approach to Long/Short Investing May 2014

Even after a five year run up in the U.S. equity markets, many investors still have ample memories of the financial crisis of 2008. Investors are uncertain of where to invest that will offer some protection against market volatility and also mitigate drawdown risk. As a result, “liquid alternatives” have seen tremendous asset flows.

01.01.2014
U.S. Equities at a Crossroads?

Nearly five years after the panic of March 2009, when stock prices dropped to the lowest levels in recent history, the U.S. equity markets have returned to the range of fair value. At around 1,800 the S&P 500 Index is trading at about 16.5 times estimated 2013 earnings, priced for a fair rate of return in the long run of between 7 and 9% - in line with historical averages. As such, the equity markets look neither cheap nor overvalued.