Perspectives Blog

The case for active muni management

Kimberly Campbell, Senior Portfolio Manager | April 21, 2014

…ave no defensive measures to protect returns when the market declines. However, it is our conviction that active management, with the support of a deep investment management bench, can provide investors with a better risk/reward opportunity, especially in today’s unpredictable investment environment. Actively managed portfolios provide investors with the opportunity to outperform their benchmarks by relying on the investment expertise of a team o…

The case for active bond management

Carl Pappo, Head of Core Fixed Income | August 25, 2014

…and inefficiencies of the fixed income market create both difficulties for indexing and opportunities for active management. Over the long term, the benefits of portfolios actively managed by skilled portfolio managers have been shown to outweigh the higher fees typically associated with active management. When deciding whether to use active or passive funds for their fixed income allocation, investors should consider whether they are saving penn…

Digital dining: How restaurants are applying technology to drive sales

Daniel Spelman, Equity Analyst | February 24, 2014

…to have a head start. In addition to driving sales, these investments also help on the back end by reducing food waste, improving labor management and broadly capitalizing on scale. By combining loyalty, payments, convenience and efficiency gains, restaurants are learning that not all successful innovation has to come from the kitchen. Sources: Company documents/earnings transcripts, Olo, Ziosk, Crone Consulting and National Restaurant Associatio…

Corporate governance – The next catalyst for Japanese equities

Daisuke Nomoto, Senior Portfolio Manager | August 4, 2014

…ness the power of private enterprise is critical to Japan’s growth strategy. Better engagement between corporate management and shareholders should ultimately lead to higher returns for holders of Japanese equities. We are focused on companies that can generate sustainable free cash flow, earn returns well above their cost of capital and regularly conduct shareholder friendly capital management. A critical aspect of Japan’s growth strategy is ov…

The end of “risk-on/risk-off”

Anwiti Bahuguna, Ph.D., Senior Portfolio Manager | February 3, 2014

The recent decline in cross-asset correlations may offer better investment opportunities for active managers Lowering both cross-asset correlations and inter-asset correlations provides potential benefits for structuring multi-asset portfolios Active managers should seek non-traditional diversifiers of portfolio performance and remain flexible A notable event of 2013 was the remarkable decline in cross-asset correlations implying potentially b…

Beware of earnings gimmicks

Jason Wang, Senior Quant Analyst | March 10, 2014

The combination of slow revenue growth, high existing margins and increased multiples creates incentives for more aggressive accounting. Stocks with the lowest accounting accruals outperformed their benchmark by 2.7% per year between 1993 and 2013. History suggests that paying close attention to changes in earnings quality can be of significant value for investors. Since the global financial crisis, economic recovery worldwide has been slow. O…