Evan Frazier, CFA, CAIA
Senior Research Analyst
The beginning of 2022 represented a change of pace for equity investors, as increased geopolitical and macroeconomic uncertainty drove the S&P 500 to its first negative quarter in two years. In light of recent performance trends and the potential for continued asset price fluctuation, market participants may be interested in assessing the viability of strategies with lower risk profiles that still offer the potential for long-term gains similar to those of the S&P 500. One such strategy is low volatility equity investing. Though it has fallen somewhat out of favor in recent years, low volatility is a generally accepted risk premia factor (akin to value, size, quality, etc.), meaning investors can theoretically expect to earn excess returns by allocating to lower volatility equities over the long run. This newsletter seeks to understand the rationale and evidence for this premium, explain recent performance of low volatility stocks, and examine the prospects of the style going forward.
Read > Low Volatility: Factor or Fad?
01.25.2023
As winter takes hold in the northern hemisphere, there are those that choose to escape to warmer climates and those…
01.05.2023
This video is a recording of a live webinar held January 19 by Marquette’s research team, featuring in-depth analysis of…
01.17.2023
If recent data points collected by the Federal Reserve are any indication, major financial institutions are bracing for a period…
01.04.2023
Last summer, gasoline prices retreating was one of the first bright spots at the macroeconomic level. Since then, CPI has…
12.15.2022
After an incredibly strong run in venture capital, public market weakness is beginning to show through in the VC space,…
12.14.2022
In classical philosophy we are taught that there are four virtues of mind and character. Given the uncertainty that lies…
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