Ideas

April 28, 2021

The Glenmede Secured Option Strategy outperformed its benchmarks this month. We remained either balanced or defensively positioned from May 2020 to April of this year, and maintain our defensive position headed into May. As Q1 earnings season heats up, we think individual earnings reports will drive stock volatility less than expectations around macro events. 

April 27, 2021

Glenmede’s Quantitative U.S. Large Cap Core Equity Strategy outperformed the Russell 1000 by 4.9%. Portfolio Manager Alex Atanasiu, CFA, discusses the positive contributions from Glenmede’s stock selection models, though quality was a slight drag. Sector allocations were also a slight positive for the quarter. He also dives into the sector-neutral performance across factors, which show the change in market leadership resulted in large performance swings.

April 27, 2021

Glenmede’s Quantitative U.S. Large Cap Growth Equity Strategy outperformed the Russell 1000 Growth Index by 7.4%. Portfolio Manager Alex Atanasiu, CFA, discusses the strategy’s positive contributions from Glenmede’s stock selection models, including higher quality, positive earnings trends and better technicals. He explains how the strategy was negatively impacted by its relatively lower market capitalization, but helped by structural underexposures to the top five names in the Growth index. Most of the relative outperformance was driven by positive stock selection effects of in Information Technology and Consumer Discretionary. 

April 27, 2021

Small-cap securities outperformed for the quarter, although performance was hurt by the growing number of negative earners in the Russell 2000, particularly biotech stocks. The Glenmede Small Cap Equity Strategy, with little representation in biotech securities, returned 14.1% (gross of fees) and 13.8% (net of fees), outperforming the benchmark’s 12.7% gain. Portfolio Manager Jordan Irving discusses this outperformance and reviews the top five contributors and detractors to the portfolio’s results.  

April 22, 2021

A decrease in COVID-19 infections, solid Q4 2020 earnings reports and anticipated stimulus spending drove optimism in Q1 of a strong U.S. economic rebound. U.S. small-caps took the baton and led the pack in the quarter. The S&P 500 and Russell 1000 indexes posted their fourth consecutive quarter of positive returns. Value continued its upward run, with the Russell 1000 Value index outperforming the Growth index. Bond yields rose significantly on longer-dated securities, as rising rates attributed to the possibility of higher inflation. 

April 19, 2021

What drives changes in investor behavior, especially during speculative periods in the markets? We examine four behavioral biases — overconfidence, herding, confirmation and anchoring — and how they affect investor decision making.
 
 

April 15, 2021

GIM Portfolio Manager, Jordan Irving, joined Julie Cooling, Founder & CEO, RIA Channel to discuss his outlook on small cap markets and how the Glenmede Small Cap Equity Strategy can be leveraged as a standalone Small Cap Core option.

April 5, 2021

The Glenmede Secured Option Strategy outperformed both the CBOE PutWrite and CBOE BuyWrite benchmarks from March 23, 2020, through March 19, 2021. Implied volatility remains elevated, with downside protection buyers bidding up defensive options. Even with the S&P 500 trading in a tight range over the last month, option buying demand remains and option selling pressure is still in short supply. This creates a fairly rich environment for option selling strategies, and we are still slightly more defensive heading into April.

April 5, 2021

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

March 26, 2021

A portfolio of 60% equity yield (as represented by the S&P 500 Index dividend yield) and 40% bond yield (as represented by the U.S. Treasury 10-year yield) may be thought of as a fairly well-hedged portfolio in terms of interest rate sensitivity. However, with a rise in Treasury rates accompanied by higher inflation expectations, there is the potential for increased equity return risk and real rate risk. In a possibly high inflationary environment, is a 60/40 portfolio still an optimal diversification allocation?  

March 23, 2021

Rising interest rates are leading investors to rediscover value stocks. After dramatically underperforming growth stocks in 2020, value stocks have begun to recover. GIM Portfolio Managers Val de Vassal, CFA, and Jordan Irving discuss the current rebound in value stocks as well as 2021/2022 projected earnings growth rates. 

March 11, 2021

After underperforming growth stocks for several years, value has done an about face and has outperformed for the past six months. Could this be a sign of a more sustainable reversal of a trend? Or is this abrupt turnaround an anomaly? We anticipate a rotation to value as the economic recovery continues to gain momentum suggesting outperformance for value stocks. 

 

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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.