For much of the past decade, equity investing has been defined by abundance. Strong beta, sustained momentum and a narrow group of market leaders meant that returns often came easily, just by being invested. When markets delivered double-digit gains, consistency was largely taken for granted.
That backdrop is changing. Return expectations are lower, market leadership is more concentrated and factor and style rotations have become more volatile. For many active managers, beating benchmarks consistently has become more difficult—and taking large, high-conviction positions increasingly risky.
So is there a way to reap the benefits of active management without assuming undue risks? Instead of searching for the next outsized opportunity, we think investors should look for portfolios designed to deliver repeatable results across different market regimes. In a lower-return world, even modest excess returns can meaningfully improve long-term outcomes, and consistency will become an increasingly valuable asset in its own right.
Read the full ‘Thought Leadership’ article at the link below
Supporting documents
Click link to download and view these filesCapturing Consistent Return Streams in Capricious Equity Markets
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