Sector tilts can skew risk and reward when selecting value stocks. Here is a way to potentially keep the weight down at check-in.

Unintended sector bets can be a trap for value investors and the bane of high Sharpe ratios.

We saw this story play out in the first quarter of 2023 as the MSCI ACWI Value Index (the Index) lagged the broad market by 6.07%. Of this shortfall, 1.98% was driven by an underweight in Technology and an overweight in Financials—the two largest sector tilts in the Index.

In recent decades, value managers that persistently long Financials and short...

Despite the significant growth in 2021 and 2022, we anticipate a decline in take-up of the Fed facility in the coming months.

The Federal Reserve's Overnight Reverse Repo (ON RRP) facility enables eligible institutions to lend excess money to the Fed while earning a predetermined rate. ON RRP take-up is often considered to be part of the excess liquidity in the financial system. Over a couple of years, we saw rapid growth in use of the facility, but we think that demand is likely to decline from here.

Moore's Law is entering a new phase, thanks to high-performance computing enabled by cloud computing and 5G connectivity.

The recent passing of Gordon Moore has reignited the debate over whether Moore's Law is dead. The late Intel co-founder predicted in 1965 that the number of transistors in an integrated circuit would double approximately every two years, leading to exponential growth in computing power. This observation held true for several decades and has been a major driving force behind the flourishing semiconductor industry, encompassing technological advances ...