4 min read | This morning the FT published an article [click to read] regarding the broadening out of market leadership and the protection that value stocks have provided for investors during the tumultuous start to 2022. These topics resonate here at Altrinsic and have been key themes in our market commentaries over the past several years. Beyond the narrative, the FT's simple charts also tell a compelling story.
The Altrinsic Emerging Markets Opportunities portfolio finished the quarter virtually unchanged (+0.1%), outperforming the MSCI Emerging Market Index’s decline of 7.0%, as measured in US dollars. Key contributors to our relative outperformance included our differentiated exposure to energy, financials, and communications services companies, our overweight exposure in key Latin American markets including Brazil, Chile, Mexico, and South Africa, and our significant underweight exposure in Russia and China.
3 min read | At Altrinsic Global Advisors, our emerging markets equity strategy is managed with a bottom-up, fundamentals-driven approach and an objective to identify high quality, underappreciated investment opportunities across the cap spectrum, truly reflecting the DNA of the EM asset class. Today, as we assess how our differentiated perspectives and exposures played out during the first year of our strategy, we find great alignment with our previous views (which we outlined in the September 2021 white paper report entitled Exploring the True DNA of Emerging Markets).
The Altrinsic Global Equity portfolio declined 0.1% during the first quarter, outperforming the MSCI World Index’s 5.2% decline, as measured in US dollars. Just as most nations began lifting COVID-related restrictions and returning to normal, tensions intensified amidst surging inflationary pressures, tightening policy measures in the US, lockdowns in China, and Russia's invasion of Ukraine.
The Altrinsic International Equity portfolio declined 1.5% during the first quarter, outperforming the MSCI EAFE Index’s 5.9% decline, as measured in US dollars. Just as most nations began lifting COVID-related restrictions and returning to normal, tensions intensified amidst surging inflationary pressures, tightening policy measures in the US, lockdowns in China, and Russia's invasion of Ukraine.
2 min read | After a decade of largely running in parallel, credit and equity markets have begun to diverge in 2022. Check out our article [click to read] for some supporting data and thoughts about why equity investors should be paying close attention to credit market dynamics.
3 min read | Hypersonic weaponry is one of the most disruptive technologies in modern defense. We recognize that this is a controversial, sensitive, and potentially polarizing topic for multiple reasons, especially given the ongoing war in Ukraine. Yet, given the significant resources governments are committing to hypersonic research and innovation, we felt it would be valuable to provide a brief, fact-based review of hypersonic technology, its history, and the potential implications from both geopolitical and industry standpoints. Our sole intent is to provide an educational overview.
With a full-scale invasion of Ukraine now underway, we want to share some thoughts about this conflict’s impact on our investment portfolios and the developments we are monitoring.
2 min read | Large-cap growth stocks continued to outperform in 2021, leading the average global stock to underperform the MSCI World Index by 6.9%, the worst figure since 1999 and the fourth year in a row of underperformance. This narrow leadership has hindered active global equity managers, but as we enter 2022, the environment is looking increasingly supportive – particularly for bottom-up, fundamental investors. Check out our article[click to read] to find out why.
Beginning with the January insurrection at the US Capitol and ending with the rapidly spreading Omicron COVID-19 variant, 2021 provided much for markets to digest. Nonetheless, equity markets continued their rise with support from re-opening economies, strong corporate earnings growth, and stimulative monetary and fiscal policies. US equities and “growth” stocks continued to lead markets during the fourth quarter, but important transitions are underway that are supportive of a long overdue broadening away from this leadership in markets.
