Equity

In our view, the recent sharp market rotation that we have seen – from “low volatility growth” to “high volatility value” – is a continuation and acceleration of the trend change that has been underway since the third quarter of this year. The turning point for “quality growth” and other hideouts was marked by the Brexit vote.

Multi-factor models are standard tools for analysing the performance and the risk of equity portfolios. In addition to analysing the impact of common factors, equity portfolio managers are also interested in analysing the role of stock-specific attributes in explaining differences in risk and performance across assets and portfolios.

?It has been and remains a tough time to be a European equity fund manager. That generally should be considered an immediate warning to look out for lame excuses as to why a fund is underperforming. Or it might actually be an interesting way of thinking about how political uncertainty, combined with an arguably overvalued bond market, is having repercussions for equities.

According to Patrick Delestra, Head of Equity at Apicil group, a balanced portfolio must used several kinds of strategies namely Small caps which outperform over the long term, Value equities that are undervalued and Growth stocks which are expensive but offer visibility.

Bottlenecks’ that have hampered India’s development are easing. India is playing catch up, and is catching up fast. Election of Narendra Modi has rebooted stalled projects, sparked new reforms. India’s domestic economy and growing middle class are the key long-term drivers...