Ideas

February 19, 2021

As the CBOE Volatility Index®, or VIX® Index, approaches the one-year mark of closing above 40, Portfolio Manager Stacey Gilbert provides a follow-up to last year’s Volatility: The Bumpy Road to Normal and highlights what we believe is an attractive opportunity for Volatility Risk Premium (VRP) strategies. In this edition of Charts and Chatter, Stacey assesses current volatility expectations given the macro environment and the possibility of continued volatility spikes throughout the year. She highlights the historical tendencies of volatility  to cluster in high and low volatility regimes and the available Volatility Risk Premium (VRP) throughout these periods. She notes how starting levels can be a factor in asset allocation decisions and the unique nature of the current high volatility regime coinciding with new all-time closing highs in broader equity markets. 

February 11, 2021

Stock market returns in January 2021 and January 2001 share a number of similarities. Both were unusually volatile months for the market, and both months reveal an historically high level of dispersion. Although dispersion was higher in 2001, there were a number of parallels, including the market cap of the high flyers.  

January 29, 2021

2020 was a tumultuous year for investors, with the S&P 500 experiencing both a record drawdown and recovery due to the Covid-19 pandemic. As the year progressed, supportive fiscal and monetary policies, gradual re-opening of the economy and positive news on the vaccine front helped strengthen investor sentiment. In this quarterly statement, the GIM team provides some key observations from 2020, including the increasing national debt and stock market volatility, and discusses possible implications for investors in 2021.  

January 26, 2021

The Glenmede Secured Options Strategy has performed well during a very difficult environment for option selling strategies. As we look ahead to 2021, what has been a major headwind may become a tailwind as we transition from a high volatility environment back to more normal levels. The high volatility environment created not only major headwinds for all option selling strategies but opportunities to outperform as well. Since the end of 2017, our secured option strategy has outperformed the CBOE PutWrite Index.

January 25, 2021

The Glenmede Small Cap Equity Strategy outperformed the Russell 2000 Index, led by strong selection in the Financials, Information Technology and Utilities sectors. Despite the relative performance deficit incurred in the first quarter of 2020, the strategy outperformed the index in three of the past four quarters. A new economic cycle could bode well for small caps and cyclically oriented companies, which could see stronger earnings growth in 2021 as pent-up demand and postponed capital expenditures could lead to revenue growth.

January 25, 2021

Glenmede Investment Management LP (GIM) recently celebrated the five-year anniversary of its Glenmede Women in Leadership US Equity Strategy (“Strategy”).

January 22, 2021

Stacey Gilbert, Derivatives Portfolio Manager, comments on Biden's first 100 days to Reuters.

January 20, 2021

With the rollout of the vaccine and additional stimulus payments, investors are beginning to look beyond the pandemic and towards the acceleration of economic activity. While small cap stocks tend to be more economically sensitive leading into bear markets, they also historically lead out into economic recovery as shown by the outperformance versus the large cap universe in the fourth quarter. Portfolio Manager Chris Colarik discusses the continued outperformance of the Glenmede Small Cap Equity Strategy and how the strategy is well positioned for an economic rebound.

January 20, 2021

While the Glenmede Quantitative Large Cap Core Equity Strategy was negatively impacted from underexposures to negative earners in the Russell 1000 Index , the strategy outperformed the Russell 1000 by about +1%. Listen as Portfolio Manager Val de Vassal, CFA, discusses how the  strategy benefited from its lower valuation discipline, underexposures to some of the largest mega-cap stocks and relatively lower market capitalizations. He explains how the diversified strategy remains well-positioned with its multifactor approach favoring stocks with cheaper valuations, stronger fundamentals, positive earnings/revenue estimate trends and attractive technicals.

January 20, 2021

Despite unfavorable contributions from multi-factor stock selection models and underexposures to negative earners in the Russell 1000 Growth Index, The Glenmede Quantitative U.S. Large Cap Growth Equity Strategy produced relatively in-line performance with the Russell 1000 Growth Index. Portfolio Manager Val de Vassal, CFA, reviews how the strategy benefited from its underexposures to some of the largest mega-cap stocks and relatively lower market capitalizations versus the benchmark. He explains how the diversified strategy remains well-positioned with its multifactor approach favoring stocks with cheaper valuations, stronger fundamentals, positive earnings/revenue estimate trends and attractive technicals.

January 14, 2021

Rob Daly, Director of Fixed Income, comments to MarketWatch.

December 17, 2020

While mega cap growth’s market leadership has been well publicized, another element of the market that rallied strongly has been so called “junk”. Investors have different definitions of low quality stocks, but many of these elements have outperformed in the past year. However, when ROE has suffered a 20% drawdown like the most recent environment, return on equity has performed even stronger, over the forward 12 months and 36 month period. A normalization in quality vs “junk” returns could be a boon to quality-based active managers. 

Pages

 

 

 

All information contained on this page represents the views of the indicated employees of Glenmede Investment Management, LP (GIM) as of the date of publication.  Views expressed may not reflect the views of management as a whole or of any affiliate of GIM, and may have changed since publication.  This page does not represent a complete discussion of facts or opinions.  Please see the full article indicated for additional information and disclosure.  Material here is for background only and is not a solicitation for the purchase or sale of any product or service.  GIM products are actively managed and their characteristics will vary.  All investment has risk, including the risk of loss of principal.  There can be no assurance that efforts to manage risk or to achieve any articulated investment objective will be successful, no matter how carefully tested.  An investor should consider investment objectives, risks, charges and expenses carefully before investing. For additional information regarding risks and about the firm, please refer to Related Literature and Disclosures.