- Quantitative Equity

- Fundamental Equity

March 16, 2017

PGIM: The impact of market conditions on active equity management

Since the financial crisis, investors have enjoyed generally benign conditions, with subdued volatility and strong markets, but active equity managers have remained under pressure. This should not be surprising; history has shown a strong pattern of counter-cyclicality in manager excess returns relative to the equity market. The Impact of Market Conditions on Active Equity Management takes a close look at the relationship between equity market conditions (defined by market returns, volatility, and dispersion) and active equity manager results.

March 15, 2017

QMA: Some like it hot - fiscal policy, inflation and the role of real assets

Of all the variables the new U.S. administration brings for investors, one of the trickiest to plan for is inflation. Inflationary pressures were already building before the election ushered in the prospect of a sweeping agenda of pro-growth fiscal and de-regulatory policies. QMA says one common way to hedge against inflation is to diversify portfolios with exposure to real assets. In Some Like it Hot, QMA analyzes historic returns during normal and above-average periods of inflation and makes the case for an allocation to real assets.

March 10, 2017

QMA: Start of Something Big: Demystifying the Source of Large Alpha in Small Caps

In the search for alpha, small-cap stocks are regularly viewed as one of the markets’ most fertile sources compared to larger capitalization stocks. Across every geographic market, the median outperformance of active small-cap managers relative to their respective benchmarks over the last five years is significantly higher than for large-cap managers.