All Strategies articles
-
White papersCLO equity insights: Thinking fast and CLO
CLO equity offers a classic example of short- versus long-term thinking. Investor dialogue and market research often emphasize short-term conditions, such as arbitrage spreads or near-term credit sentiment. But, in our view, this underappreciates the compounding impact of long-term optionality in the structure.
-
White papersFour lasting impacts of the Iran war
When I served as a United States diplomat, we often said that war is the failure of diplomacy. The inconclusiveness of initial negotiations in Islamabad underscores just how fragile diplomacy can be.
-
White papersFive reasons to consider US short-duration high yield bonds
Amid the increasingly complex set of headwinds facing investors, a short duration high yield investment strategy can be designed with the aim of delivering a simple goal – generate stable, consistent income while minimising volatility and avoiding principal losses.
-
White papers2Q 2026 Fixed income perspectives
Themes, outlook, and investment implications across global fixed income markets.
-
White papersDéjà vu: Parallels between the dotcom era and the AI surge
Comparing previous tech booms and bust cycles with today’s AI surge highlights some notable patterns. Historically, undervalued stocks with low price/earnings ratios have outperformed during market downturns that followed unsustainable rises in valuations. This underscores the importance of focusing on valuation to manage risk. Understanding historical parallels can help inform smarter investment decisions amid market uncertainty.
-
White papersPortfolio manager Q&A: MDT Market Neutral
We asked Dan Mahr, Head of MDT, to discuss MDT’s market neutral strategy — its history, approach and how it may fit within a portfolio. Please find edited excerpts from the conversation below.
-
White papersBehind South Korea’s spectacular surge
Federated Hermes’ Asia ex Japan Equity Strategy was boosted by the soaraway performance of South Korean stocks last year. How are we responding? And is there still value in our South Korean holdings?
-
White papersRelative Value & Tactical Asset Allocation – Q2 2026
Our quarterly Relative Value and Tactical Asset Allocation combines insights from our investment teams and the Global Economic and Market Strategy team to assess relative value across major asset classes.
-
White papersThree strategies for investing amid AI whiplash
The debate over artificial intelligence has taken a sharp turn. Initial exuberance over AI’s transformative potential sparked investor fears of an AI bubble. But that concern has now been overshadowed by anxiety that the AI juggernaut will steamroll large segments of the global economy.
-
White papersCapital Solutions, Explained
Capital solutions has evolved far beyond its origins in distressed debt. Today, it functions as a form of “direct lending plus”—pairing tailored outcomes for borrowers with the potential for strong, cash-yielding returns for investors.
-
-
White papersBeyond Bonds: The role Hedge Funds could play in portfolios
Investors over the past few years have had to grapple with elevated geopolitical challenges and uncertainty both over the direction and level of interest rates across the globe. While equity markets have attained record highs, albeit buffeted by the occasional bouts of volatility the same cannot be said for fixed income markets.
-
White papersOut of the Black Box: Uncertainty Quantification for LLMs via Conditional Probabilities
Autoregressive LLMs generate text by sampling from estimated probability distributions over the next token, conditional on preceding context. We leverage these conditional probabilities to construct an entropy-based measure of prediction uncertainty, which we term inner confidence. Predictions with higher inner confidence are systematically more accurate.
-
White papersPure momentum
Momentum trading strategies exploit return persistence, but conventional past-year cumulative-return measures generate a noisy signal that attenuates performance. We propose a pure momentum strategy that identifies trends directly from daily returns. Our method reduces volatility, tail risk, and transaction costs while enhancing profitability. Performance is primarily driven by long positions in winners, supporting theories postulating overconfidence. The bad news, instead, appears to be incorporated more slowly. In particular, we show that omitting the most recent month is unnecessary to identify winners.
-
PodcastIran: A temporary shock or a persistent shift? - Global Investment views by Outerblue Convictions
The war in Iran has shaken markets and is threatening the stability of the global economy. As energy prices surge and the news flow comes thick and fast, this month’s host, Silvia Di Silvio, speaks to Monica Defend, Head of the Amundi Investment Institute, to hear her thinking on the crisis and how it is changing Amundi’s investment views.
-
White papersMDT: A day in the life of a quant investor
Just what is it that quant managers do? We asked Dan Mahr, Head of Federated Hermes’ MDT Advisers, exactly that question and his response was enlightening. One thing we learned: it’s not all algorithms and machine learning – the human interface is important too.
-
White papersFive questions: Sustainable Global Investment Grade Credit
How a high-conviction process and active engagement seek to uncover attractive, sustainable opportunities in investment grade credit.
-
White papers20 years of Euro LDI funds: A proven foundation now widely supporting European pension schemes
Liability-driven investment (LDI) has transformed from a Dutch regulatory response into a mature, pan European framework for pension risk management. Today, Irish and German schemes are increasingly drawing on this long established expertise to strengthen balance sheet stability and prepare their plans for the next stage of their evolution.
-
White papersIntegrating Geopolitical Risk Into Low Volatility Factor Construction
Financial markets respond not only to quantitative fundamentals but also to narratives that shape investor perceptions of risk, particularly during periods of heightened geopolitical uncertainty. While the low volatility factor has demonstrated robust risk adjusted performance across markets, its construction is typically static and does not account for narrative-driven fluctuations in risk.
-
PodcastRenewable energy in focus amid the energy shock
What do current events in the Middle East mean for the clean energy sector? How can vulnerability to fossil fuel shocks be reduced?
