Thought Leadership

We have repeatedly discussed the increase in market concentration¹ for U.S. large cap stocks and the potential concentration risk for investors in large cap passive strategies. The …

We are seeing unprecedented market concentration in broad-based indices.

Beyond the Surface: Peripheral Impacts of a Higher Cost of Capital on Small Cap Markets In our October 2020 paper “Why Profitability Matters: Positive Versus Negative Earnings,” …

Instead of debating the likelihood of a recession, we compare the behavior of the yield curve during the “un-inversion.”

We are seeing unprecedented market concentration in broad-based indices.

Market cap-weighted index funds reflect several risks to the investor. An experienced active manager can effectively reduce some of these risks with quantitative tools, a valuation discipline, fundamental research, and portfolio optimization techniques.

What’s Wrong With This Picture? The Fed’s dot plot is again causing a stir as investors try to glean wisdom about the long-term trajectory of interest rates. …

GIM Small Cap Portfolio Manager Jordan Irving reexamines the Russell 2000 Index concentration of negative earners and the outsized influence that the lower quality nature of recent Initial Public Offerings has exerted.

With the disparity of diversification between the Russell 1000 Growth and Value indices becoming more extreme, investors may want to seek active managers who can diversify away from these unprecedented levels of concentration. Learn more.

Historically, it was assumed that a higher cash reserve is a reflection of positive cash flows, indicates stability or at least a baseline level of liquidity, and that a higher proportion of CMV would indicate a discounted buying opportunity. However, research by the Quantitative Equity team at Glenmede Investment Management (GIM) has indicated that high proportions of cash or current assets to market value can actually be a proxy for higher volatility.