Multi Factor Investing: The factors Value and Quality deliver
We analyse the current performance of the factors value, momentum and quality. For quant investors, 2022 was marked by the comeback of the value factor.
Blog
Tactical Asset Allocation for December 2022
The euphoria is rather premature. We are once again reducing our equity exposure below the benchmark. Bonds will profit from falling inflation and an economic slowdown.
Will inflation spoil Black Friday?
The «Super Shopping Month» has started with Singles Day. Forecasts indicate a mixed Black Friday and Cyber Monday. High inflation is also dulling the desire to buy.
Small Caps Europe: Baked very small rolls this year
It is not only the baker who is suffering from high gas and electricity costs and is now trying to sell his rolls a little more expensively or save on the cost of goods. The European economy is on course for recession. European equities suffer, especially small caps.
Spotlight on electric vehicles and batteries
In a video interview, Dr Manuel Renz and Dr Daniel Fauser provide information about the current development status of electric vehicles and their core component, the battery.
Say goodbye to TINA and hello to TARA
We say farewell to TINA – There Is No Alternative. TINA had been a reliable partner in recent years - always supporting the stock markets. Now we say hello to TARA – There Are Real Alternatives. Does TARA offer reliable prospects?
European equities in the grip of inflation and recession risks
Record-high electricity and gas prices are paralysing the economy. The European Central Bank has declared war on inflation and is increasing interest rates in huge steps. What can investors expect from European equities in this environment?
Equities: Exchange rates back in play
Currency fluctuations are increasing due to interest rate rises. This has a direct impact on the performance prospects of equities. How have Swiss equities and others fared so far?
Concerned about price drops? Collars slow down the fall
Since the "free" put from central banks is no longer provided in the context of rising interest rates, investors are taking the hedging of their portfolios back into their own hands with the use of the collar strategy.
Using renewable energy to mitigate rising inflation and supply insecurity
Europe is facing record fuel prices. Equities from the renewable energy sector can therefore be seen from a new perspective.
Equities: Where institutional investors now find relative strength
Quantitative analysis can be used to achieve outperformance compared to the benchmark. The value factor in particular is able to deliver relative strength in the weak overall market.
Tactical Asset Allocation August 2022
The spectre of stagflation will persist and financial conditions will continue to worsen.We are taking advantage of the equity rebound in July and are underweighting equities before the seasonally weak months of August and September.
On the brink of stagflation
High inflation and a subdued economic outlook are pushing many economies towards the brink of stagflation. What does this mean for equity investments?
Is devaluation for equity over? A bottom-up perspective
Rising inflation and interest rates have been affecting equities for several months. How can the journey continue and how can an equity portfolio be aligned?
The right mix against high inflation and rising interest rates
The sharp rise in inflation is forcing the US Federal Reserve to raise interest rates. Which strategy can ensure successful returns in such an environment?
Tracking down attractive Swiss equities
The search for promising Swiss equities requires a structured investment process. The focus here is on quality, value and sustainability.
Mixed Swiss portfolio during inflation: is there a threat of a «lost decade»?
High inflation brings rising interest rates – with equities and bonds going down together. How does a mixed Swiss portfolio behave during phases like this? We have examined a mixed Swiss portfolio spanning a period of 100 years.
Focus on commodities, Switzerland and sustainability
High inflation, rising interest rates and expensive commodity prices are affecting companies' earnings reports. We see opportunities, for example in defensive sectors, commodities and sustainable energy.
Tactical Asset Allocation April 2022
The recovery rally in March was used to sell stocks. New headwinds are expected for equities.
Fully electric in the fast lane
The greater range and, of course, the sharp rise in fuel prices are making electric vehicles attractive. Automotive manufacturers are investing heavily here.
Water: ways to use it more efficiently
In many parts of the world, water shortages are imminent or already occurring. In agriculture, there are numerous approaches to more efficient use of water.
What really drives e-mobility
The ultimate breakthrough in e-mobility will be achieved when the costs of battery production reach the level of a classic combustion engine. We're not far away from that right now.
Litmus test for factor premiums
Systematic multi-factor strategies have proven them-selves again after a long dry spell. Thanks in part to the recovery in value stocks, they once again deliv-ered the performance expected of them. The most recent market upheavals are now calling for the next litmus test.
Is the wage-price spiral about to appear?
As a result of higher commodities prices and supply chain problems as well as a surge in economic demand after the pandemic, prices for consumer goods are rising across the board. Upward pressure on wages is therefore increasing, too. This development has consequences for equities.
Effects of interest rate developments on bank equities
Part IV of our five-part series on interest rate sensitivity in various asset classes.
Effects of interest rate developments on bank equities
Although the war in Ukraine abruptly stopped the upward trend in bank equities, rising interest rates continue to have an effect on banks' earnings.
Are interest rate hikes non-events for assets?
The market anticipates up to five interest rate hikes by the US Federal Reserve by the end of this year. These developments entail investment opportunities and risks for multi-asset investors.
An investment bottom-up perspective
Why are stock returns so sensitive to rising interest rates and how could investors better consider this risk in the investment decision-process?
A bottom-up perspective on equity investments
Why are stock returns so sensitive to rising interest rates and how could investors better consider this risk in the investment decision-process? One way to answer this question is by looking at the equity market from a bottom-up perspective.
ROIC (II): Quality offers sweet return opportunities for equities
The second post in our ROIC series provides insights into the integrated quality assessment in the buy-side research of asset management.
Hedging strategies: how to stay on the board without fear
Surfing the price wave for as long as possible – that is the goal of most investors. A suitable hedging strategy can reduce the risk of large losses without sacrificing potential price gains.
Capturing and storing CO2 for climate protection
The capture and storage of the most common greenhouse gas CO2 in the atmosphere is an important component of any climate strategy.
International Energy Agency points the way to a climate-neutral global economy
The dangers of the climate crisis are becoming visible to more and more people and institutions. Even the International Energy Agency (IEA) has recognised the signs of the times.
Artificial intelligence: unlocking hidden sources of alpha
The financial sector is one of the sectors of the global economy with the highest availability of data. How can this huge amount of data be used cleverly? Can this help generate an excess return in the equities sector?
ROIC (I): Key parameter in our stock selection
As part of our global equity research, we deal with ROIC on a daily basis. But what does this mean?
Value and momentum: convergence in 2021?
The rotation to value stocks continues. This not only affects the performance of value and growth, but also the momentum factor. The prerequisites exist for a particularly successful combination of value and momentum. How can investors position themselves to benefit from this development?
AI – investment decisions without intuition
Artificial intelligence has become an integral part of our world. But can this technology also be used profitably in the financial sector, and how does machine decision-making differ from that of humans and rule-based approaches?
Turkey: High credit growth entails high risks
Over the past 12 months, the country's rapid economic recovery has been driven by the government's preference for very high credit growth. This has again exacerbated the risks to Turkey's financial stability.