The surging US economy and stock market have left international markets behind, with the S&P 500 Index beating the MSCI EAFE Index1 by 7.1% per year for 11 years. But US equities don’t always outperform the rest of the world, and the potential of international equity returns shouldn’t be overlooked. Currently, most investors are under-allocated to international equities and now might be a good time to invest more overseas.
There is mounting concern about geopolitics, interest rates, the economy and the length of the current market expansion. A long-term view can help to put things in perspective and perhaps relieve some anxiety.
Classifying funds based on their investing strategies instead of via the traditional style grid presents a new way to look at diversification.
High return dispersion and volatility are a stock picker’s nirvana.
Funds that consistently pursue a narrowly defined investment strategy while taking high-conviction positions outperform.
A simple question asked over 25 years ago, “How should we group and evaluate active equity fund managers?” has evolved into a powerful foundation for rethinking how we look at markets and investment managers.