Insights

July 19, 2024
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Eric Green, CFA
CIO - Equity, Sr. Portfolio Manager

What is the credit market telling us about the potential of equity returns?

After significant underperformance of small cap equities relative to large cap equities during the first half of the year, we believe small cap stocks began their recovery on both an absolute basis and relative basis to large cap stocks. Although credit market improvement year-to-date has propelled the mega cap stocks, small cap stocks have been left behind. This is an unusual occurrence in a strong credit environment, and we expect small cap stocks to catch up with large cap over the next year.

Full Article
May 25, 2020

Small Growth passing baton to Small Value

Small value equities are valued -38% below their 10-year average, while growth, defensive, low volatility, and ESG factors exceed the bubble threshold of +30%. This dispersion has reached a 20-year high, in line with the dot-com bubble.

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J. Paulo Silva, CFA
Sr. Portfolio Manager
November 12, 2019

Equity's Credit Blindspot

Equity has a credit blind spot. 95% of Russell 3000 companies issue debt, 75% of which is sub-investment grade. Equity investors study stock price movements but often ignore credit market signals.

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Joe Maguire, CFA
Sr. Portfolio Manager

 

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