Investment Insights

Broadening array of outcomes for key macroeconomic variables, gradual removal of monetary policy support suggest higher volatility regime is likely to persist across asset classes. We see the same drivers supporting and sustaining higher return dispersion within equity markets. Strong historical relationship between higher return dispersion and outperformance in actively managed equity mutual and equity hedge funds. Our view is that we are at the early stages of a multi-year market regime that is likely to offer high conviction active managers the opportunity to generate significant alpha