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Money Manager Commentary: Why Was the Market So Volatile This Week?

Posted by WrapManager's Investment Policy Committee

February 8, 2018

Money Managers have had plenty to say about the market volatility that started last week. That’s why this week we’re doing something different. The post below is a compilation of five different commentaries. As usual, you can read the excerpt below, or click the link to download the full version of each of the individual commentaries.

Keep reading to see what the following money managers say about this week’s volatility.

Lord Abbett and Company

Cambiar Investors

Nuveen Asset Management

Federated Investors

ClearBridge Investments

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Federated Investors Inc Lord Abbett Company Llc Nuveen Asset Management Cambiar Investors, LLC ClearBridge Investments LLC market perspective Market Volatility Money Manager Commentary

Presenting WrapManager's Q4 2017 Top International Equity Money Manager Picks Report

November 30, 2017
While the United States represents the largest single contributor to global GDP, 75% of the world’s GDP is taking place across our borders in other countries. That means that from an investing standpoint, an international equity strategy can help diversify your portfolio and take advantage of the many investment opportunities available outside of the U.S. Though we have seen that historically there have been market cycles where international equities outperform U.S. equities[1], there can be a tendency for many American investors to have a home bias that favors domestic investment and largely ignores non-U.S. opportunities. [+] Read More

Cambiar Investors Reflects on 1st Quarter 2017

May 25, 2017
The year 2016 marked the first year since the Global Financial Crisis (GFC) of 2008-09 when value investing decisively beat growth investing as a category, with value-style returns exceeding growth style returns by roughly 10 percentage points in most capitalization categories last year. Value stock indices are heavily populated by financial companies, which tend to be very sensitive to interest rate trends. Unsurprisingly, financials, bond yields, and value stocks as a category leapt forward in sync following U.S. elections, and subsequently lagged in relative performance terms when the upward momentum in bond yields topped out in early January, perhaps reassessing how much real change can be wrought. Whether or not value stocks truly “over-performed” in late 2016 or just needed to consolidate gains remains to be seen, but the change in market conditions in the first quarter suggests at least one of these narratives is true. Right around the Trump inauguration in January, market conditions flipped, and big cap growth stocks (which had lagged in late 2016) went on a tear while value names did little. The flip back from value to growth was most pronounced in small caps (growth benchmarks up over 5%, value indices down fractionally); that said, growth issues outpaced their value counterparts by a factor of 1.5x to 2.0x in most broader indexes. [+] Read More

Cambiar Investors Insight: Brexit Results

June 28, 2016
Cambiar Investors provides insights on the Brexit results. Their commentary can be read in full here. [+] Read More

Cambiar Investors International ADR

November 9, 2015
While market concerns had investors scrambling for the exists, Cambiar Investors took advantage of the market weakness in Q3 to deploy capital into a number of new investments. Read their Q3 2015 commentary below. "Market Review After fairly muted performance for the first half of 2015, global equities sold off in the third quarter. In contrast to prior pullbacks that were often met with buyers stepping in to buy the dips, investor sentiment towards stocks deteriorated considerably in the quarter. A popular Wall Street phrase is “stocks climb a wall of worry” – referring to the tendency for equity markets to overcome a host of negative factors and move higher. Yet is seems the wall got too high in the quarter. Global growth fears (led by China), increasing uncertainty of U.S. monetary policy, and continued pressure in Emerging Markets were just some of the concerns that had investors scrambling for the exits. While all of these factors warrant careful consideration, it is Cambiar’s view that the correction in the quarter was of the “shoot first/ask questions later” variety, vs. fundamentally driven. Given our value orientation, such reflexive selling can provide attractive entry points; to that extent, Cambiar used the market weakness to deploy capital into a number of new investments during the quarter. [+] Read More

Cambiar Investors Commentary - China, Greece, and Interest Rates

August 27, 2015
Cambiar Investor's Q2 2015 market commentary discusses China, interest rates, and what it all means so far this year.  "The Waiting Game Financial market returns were quiet in the second quarter, seemingly waiting for some kind of definitive signal that never arrived. The S&P 500 Index, MSCI EAFE Index, and MSCI Emerging Markets Index were each essentially flat for the quarter, with relatively limited volatility. The former two had each about a 3% gain going into the last 10 days of the quarter, but surrendered their gains as Greece threatened (for the fifth time in as many years) an uncontrolled debt default and exit from the Euro system. The Greek's gamesmanship was once again cauterized by international financial agencies only after the Greeks were very bluntly threatened back with the same medicine. This suggests that European authorities are no longer concerned that a Greek Eurozone exit would be a systemically destabilizing event. [+] Read More

Cambiar Investors Commentary - Q1 2015

June 11, 2015
In Cambiar Investors' First Quarter Market Commentary, they discuss a wide array of world events effecting their positions. “The first part of 2015 saw global financial returns transposed versus the back half of 2014. Following a peculiar 2014 where U.S. blue chip stocks generated the only significantly positive returns in U.S. dollar terms, conditions have so far reversed in 2015, with international returns faring better than U.S. returns in both local currency and dollarized terms. [+] Read More

Will International Outperform US Stocks in 2015? - Cambiar Investors

May 6, 2015
Cambiar's commentary highlights a cautious view on energy and reviews the strategy's international approach following Japan's surge in Q1.  [+] Read More

International Money Manager of the Year: Cambiar Investors

September 3, 2014
For 10 years, the publication Investment Advisor has researched and ranked who they consider the best money managers across the country. They seek out money manager strategies that apply sustainable and repeatable investment processes, with a goal to deliver consistent performance through various business and market cycles.1 In 2014, the award for Best International/Global Equity Money Manager of the Year went to Cambiar Investors. We think it is a well-deserved accolade for Cambiar, who also took home this award in 2012.2 The consistency of their investment approach alongside their track record has earned them the highest respects from Investment Advisor, and also helped garner them a spot on WrapManager’s “Top Equity Money Manager Picks for 2014.” [+] Read More

Market Volatility is Around the Corner - Cambiar Investors

August 12, 2014
International money manager Cambiar Investors details the performance of their strategies and the global markets in their latest commentary. While remaining optimistic, they see increased stock market volatility in the second half of 2014 and stress the importance of diversification and balance within portfolios. “Looking ahead to the second half of the year, Cambiar remains optimistic about the overall positioning of the International Equity and Global Select portfolios. We continue to believe that Japan offers a compelling risk/reward opportunity, emboldened by solid execution and attractive valuations at the corporate level, as well as strengthening macroeconomic data. Cambiar is also encouraged by the recent policy actions of the ECB to combat disinflation, although an important next step will be to evaluate if these measures provide the necessary catalyst for increased lending volumes.“ Download Cambiar's Full Commentary Here Get Free Research Reports on Cambiar Investors [+] Read More