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White paper: Smart Beta 2.0, A Disruptive Innovation

There is a new battlefront in the money management business. New smart beta ETFs are entering the market to compete against actively managed mutual funds. These funds will be formidable competition, offering the possibility of superior performance — traditionally the province only of actively managed funds — lower expense ratios and other advantages. As with every […]

Growth Or Value Leadership Depends on Fed Policy

SV 6.19.15

The last few years have been good for growth stocks, but I think there is another observation underneath the surface as well.  Growth and value leadership has pivoted on Fed policy the last five years.  In the chart below, I plot the relative performance of the S&P 500 Growth Index compared to the S&P 500 […]

Stock Picks in the European Technology Sector

SV 6.10.15

For the last five years the European technology sector has been locked in a trading range relative to the MSCI All Country World Index (USD). Recently, however, European technology stocks have been performing quite well.  On an equal weighted basis, they have been the second best performing group in Europe year-to-date. While there are only 17 […]

June is Out… But 2015 Lift-off Still On

SV 6.8.15

Looking at Fed Funds futures contracts, it would appear that the fixed income market has ruled out a June rate hike but is coming back to the idea of a 2015 lift-off.  Currently June fed funds future are spot on the current effective fed funds rate of 13bps.  In the chart below, we plot the […]

WHITE PAPER – The Gavekal Knowledge Leaders Indexes: Capturing the Excess Returns of Highly Innovative Companies

A rich academic history suggests equity returns can be explained by risk exposures, or factors. In our first white paper, we identified the Knowledge Effect, the tendency of highly innovative companies to experience excess returns. In this second report, we detail how we create the Gavekal Knowledge Leaders Indexes to capture the Knowledge Factor. Download […]