In this video, we look at how the heightened macro uncertainty and stock return dispersion of late may give active equity managers more potential upside by their ability to focus on companies with strong fundamentals for their portfolios.
Key Takeaways
- Since the COVID pandemic, markets have experienced a new regime of greater volatility and uncertainty. This has led to heightened dispersion in markets around the world.
- High levels of market dispersion give active managers an opportunity that passive funds don’t have: the chance to be selective and focus on owning securities with strong fundamentals and earnings growth to drive returns.
- Active management historically outperforms in down markets and when stocks are not moving in sync. Volatility and dispersion often pick up during periods of stress, further underlining the potential of active management in volatile market environments.
- With elevated macro uncertainty alongside rich valuations, active managers may have an opportunity to generate alpha through insightful security selection focusing on companies with strong fundamentals.
The opinions and analyses expressed in this presentation are based on Curi RMB Capital, LLC’s (“Curi RMB Capital”) research and professional experience are expressed as of the date of our mailing of this presentation. Certain information expressed represents an assessment at a specific point in time and is not intended to be a forecast or guarantee of future results, nor is it intended to speak to any future time periods. Curi RMB Capital makes no warranty or representation, express or implied, nor does Curi RMB Capital accept any liability, with respect to the information and data set forth herein, and Curi RMB Capital specifically disclaims any duty to update any of the information and data contained in this presentation. The information and data in this presentation does not constitute legal, tax, accounting, investment or other professional advice. An investment cannot be made directly in an index. The index data assumes reinvestment of all income and does not bear fees, taxes, or transaction costs.
