Factor Spotlight

This week, US investors are taking risk and eyeing a friendly market environment despite a higher-than-expected CPI print on Tuesday.

This week, the markets reached historical highs as investors turn value aside in favor of growth-oriented stocks.

This week, investors turned against beta, residual volatility, and growth factors, particularly following the Fed’s comments surrounding unlikely rate cuts in early 2024.

This week, investors piled into beta, leading up to positive news surrounding US GDP growth and slowing inflation.

This week, the US market witnessed the Nasdaq's tech-driven surge and the Dow's stumble, amidst a surge in consumer confidence. Globally, investors navigated a volatile landscape, with sharp focus on stable sectors in Developed Markets, and unfolding regulatory dramas in China.

Many of our community members manage global funds or have focused Developed and/or Emerging Market strategies. As you analyze your 2023 strategy performance, we hope that the below will help you quantify the market environment of 2023 and answer questions such as: In comparison to prior years, was 2023 more of alpha or factor-driven year? Which factor characteristics (sector, fundamental, macro, etc..) were associated with positive and negative market moves in 2023? Which factor characteristics had standout positive or negative performance, unlike prior years?

As we enter the new year, we typically find that many of you focus your efforts in the first two weeks of January to conduct a 2023 review of your portfolios in support of your annual investor letters. At Omega Point, we’ve found that we can be potentially supportive of these efforts by helping you quantify the market environment of 2023 and answer questions such as: In comparison to prior years, was 2023 more of alpha or factor-driven year? Which factor characteristics (sector, fundamental, macro, etc..) were associated with positive and negative market moves in 2023? Which factor characteristics had standout positive or negative performance, unlike prior years? Below, you will find a rich set of analytics and a narrative to help you answer the above questions and go deeper as well. Since this analysis is a bit longer than most weeks, we’ve also included a TLDR section so you can get the key highlights quickly and go deeper at your own leisure. We greatly appreciate you being a member of our community and look forward to collaborating with you in 2024.

As we approach the end of the year, we at Omega Point want to extend our warmest Holiday Greetings to you. We hope Factor Spotlight has empowered your decision-making and contributed to your success in 2023. This festive season, we wish you joy, peace, and continued prosperity. Here's to a new year filled with innovative solutions, strategic growth, and exceptional opportunities in the world of investment.

This week, the US market soared with the Dow and Nasdaq hitting highs, spurred by the Fed's optimistic rate outlook for 2024.

Navigate a dynamic market landscape this week, where a combination of significant alpha opportunities and factor forces propels market volatility.