Ideas

November 18, 2020

Pfizer’s recent vaccine news sent shockwaves through the market as investors digested it’s long-term implications. Style and factor returns were among the widest for any day in recent history with the widest spread of all in price momentum. A movement of this magnitude within a month tends to have lasting effects on market leadership. A continued reversal in market leadership would suggest a broadening of market breadth and likely offer more opportunity for active managers.
 

November 17, 2020

In spite of the unusual market conditions of 2020, investors have continued to support mega cap growth stocks which appear to be significantly overvalued. With multiple indicators signaling significant risk based on historical trends, Quantitative Equity Portfolio Manager Val de Vassal reviews the ever-increasing market concentration and potential for a cyclical shift that could reduce the dominance of today’s market leaders.

November 3, 2020

Stacey Gilbert, Derivatives Portfolio Manager, comments to Bloomberg.

October 28, 2020

The Glenmede Secured Options Strategy outperformed the CBOE PutWrite benchmark for the October expiration cycle due to the wider strike selection that was in place. As the focus shifts to the upcoming U.S. election, volatility in increasing along with downside skew. The strategy is more defensively positioned heading into November.

October 28, 2020

Currently, it appears large and mega cap names have very little short interest compared to mid and small cap stocks. The largest names appear extended in terms of aggregate market capitalization and valuations relative to the average stock. This suggest to investors caution in allocating too much of one’s portfolio in a small set of names, however large they may be. 

October 23, 2020

Periods of outperformance by negative earning small cap stocks—such as the dynamic seen in today’s market—are not new. Central bank easing has helped enable these environments. Historical data shows that over time, mean reversion has typically occurred, and stocks with earnings have retaken their leadership positions.

October 23, 2020

In this quarterly statement, the GIM team examines three topics related to the upcoming U.S. presidential election: the current odds of various outcomes, important dates in the election process for investors to watch, and the potential impact on investments of possible policy shifts.

October 22, 2020

Allocations to health care and industrial stocks were key to the positive results for the Glenmede Small Cap Equity Strategy in the third quarter despite overall market conditions continuing to favor both large and growth stocks. Portfolio Manager Jordan Irving discusses performance and presents an analysis of negative earning companies in the Russell 2000, which are at an all-time high.

October 22, 2020

Key indexes continued to be driven primarily by just five mega capitalization stocks during the third quarter. With holdings concentration limits and a bias toward lower valuations, Glenmede Quantitative U.S. Large Cap Core Equity Strategy underperformed for the quarter overall. However, the strategy’s diversified portfolio is in a strong position across a range of valuation and fundamental metrics compared to its benchmark. Quantitative Equity Portfolio Manager Alexander Atanasiu, CFA, reviews performance and an analysis of Russell 1000 Growth and Russell 1000 Value relative valuation spreads, which are at or near the highest levels since 1993.

October 22, 2020

The Glenmede Quantitative U.S. Large Cap Growth Equity Strategy maintained its diversified approach and limits on holdings concentration to help control for stock specific risk. The strategy’s lower relative market capitalization and underexposure to the market’s top five performers had a negative effect on third quarter performance, as Quantitative Equity Portfolio Manager Alexander Atanasiu, CFA, explains. With concentration in key indexes surpassing the peak of the internet bubble, he examines whether the market is due for a shift.

October 22, 2020

Financials have significantly underperformed the market this year and their weight within the S&P 500 Index has fallen to levels last seen at the depth of the Great Financial Crisis as earnings estimates have been pressured by expectations for higher credit losses, along with the negative impact of lower interest rates on their spread revenues. With credit losses more fully reflected on banks’ balance sheets now, earnings should rebound from this pressure point provided there is not a meaningful backslide in the economy allowing for an opportunity for Financials to recover relative to the rest of the market.
 

October 20, 2020

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

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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.