The value factor has underperformed for a decade and frustrated allocators have increasingly abandoned the style, with global equity portfolios heavily tilted towards factors and regions trading at historical extremes. Value is too often perceived as low quality, cyclical, economically sensitive and littered with disrupted former titans. But allocators willing to take a more contemporary approach to identifying value can build in diversifying ballast within global equity portfolios, particularly against a backdrop of increasingly concentrated passive exposure. Markets are entering a whole new world (again!), a turning point where the next cycle’s winners will look very different from the past decades. AI is hardly the only activity reshaping the world – geopolitical realignment, energy transition, and aging demographics are creating profound mispricing, offering asymmetric opportunities and, in turn, diversification and downside protection against passive core portfolios overweight the ‘old world’.

Jacob Mitchell | 0.50 CE

Rates are normalising, populism is on the rise, technology is driving disruption. But not every perceived winner will win and not every perceived loser will be destroyed forever.

Jacob Mitchell | 0.25 CE

Investors should focus more than ever on uncovering sources of idiosyncratic alpha, rather than relying on momentum or passive beta.

Jacob Mitchell | 0.25 CE

Investors should focus on asymmetric opportunities with a margin of safety and multiple ways of winning. Developed Asia and Europe offer these in abundance.

Jacob Mitchell | 0.25 CE

The extreme thirst for yield has pushed the US high yield debt cycle into unchartered territory. It is approaching shakeout - with long/short opportunities amongst the beneficiaries of the current cycle.

Jacob Mitchell | 4 comments | 0.50 CE

The extreme thirst for yield has pushed the US high yield cycle into unchartered territory. In a clear case of déjà vu (replace "subprime" for "high yield"), the cycle has reached the shakeout phase.

Jacob Mitchell | 0.50 CE

The extreme thirst for yield has pushed the US high yield cycle into unchartered territory. In a clear case of déjà vu (replace "subprime" for "high yield"), the cycle has reached the shakeout phase. It's time to sell/short the beneficiaries.

Jacob Mitchell | 1.00 CE