After the results of the US election were announced, the Russell 2000 index broke out of its 2024 range and approached all-time highs. On this episode of Inside Active, host David Cohne, mutual fund and active management analyst with Bloomberg Intelligence, along with co-host Michael Casper, BI’s sector and small-cap strategist, spoke with David Green, a principal of Hotchkis & Wiley and a portfolio manager on the Small Cap Value (HWSIX) and Value Opportunities (HWAIX) funds. They discussed the firm’s focus on high quality companies at low valuations and its fundamental risk-rating system. They also spoke on the challenges and opportunities for small caps and why mergers and acquisitions may increase under the new administration.

After the results of the US election were announced, the Russell 2000 index broke out of its 2024 range and approached all-time highs. On this episode of Inside Active, host David Cohne, mutual fund and active management analyst with Bloomberg Intelligence, along with co-host Michael Casper, BI’s sector and small-cap strategist, spoke with David Green, a principal of Hotchkis &amp; Wiley and a portfolio manager on the Small Cap Value (HWSIX) and Value Opportunities (HWAIX) funds. They discussed the firm’s focus on high quality companies at low valuations and its fundamental risk-rating system. They also spoke on the challenges and opportunities for small caps and why mergers and acquisitions may increase under the new administration.

Hotchkis’ Green on High Quality at Low Valuations

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Profitable companies tend to perform well among small caps, as evidenced by the Bloomberg MVP small-cap portfolio, which returned 11.9% annualized in a backtest run from 1999 to September 2024. On this episode of Inside Active, host David Cohne, mutual fund and active management analyst with Bloomberg Intelligence, along with co-host Michael Casper, sector and small-cap strategist, spoke with Mitch Zacks, CEO and principal portfolio manager of Zacks Investment Management about the significance of upwards earnings-estimate revisions and why they could be crucial for predicting stock performance. They also discussed the evolving landscape of small-cap stocks and why valuation metrics are more relevant for larger companies.

Profitable companies tend to perform well among small caps, as evidenced by the Bloomberg MVP small-cap portfolio, which returned 11.9% annualized in a backtest run from 1999 to September 2024. On this episode of Inside Active, host David Cohne, mutual fund and active management analyst with Bloomberg Intelligence, along with co-host Michael Casper, sector and small-cap strategist, spoke with Mitch Zacks, CEO and principal portfolio manager of Zacks Investment Management about the significance of upwards earnings-estimate revisions and why they could be crucial for predicting stock performance. They also discussed the evolving landscape of small-cap stocks and why valuation metrics are more relevant for larger companies.

Mitch Zacks on Upward Earnings-Estimate Revisions

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Buffer ETFs, which use options to limit losses and offer upside potential, have taken in around $10 billion in new flows this year as their popularity grows. On this episode of Inside Active, host David Cohne, mutual fund and active-management analyst with Bloomberg Intelligence, along with co-host James Seyffart, a BI ETF analyst, spoke with Burke Ashenden, director of capital markets at Innovator ETFs, about the rise of defined-outcome ETFs. They examine the unique features that set them apart from traditional investment funds, and how they provide risk-managed exposure. They also discussed how the underlying management of these products works.

Buffer ETFs, which use options to limit losses and offer upside potential, have taken in around $10 billion in new flows this year as their popularity grows. On this episode of Inside Active, host David Cohne, mutual fund and active-management analyst with Bloomberg Intelligence, along with co-host James Seyffart, a BI ETF analyst, spoke with Burke Ashenden, director of capital markets at Innovator ETFs, about the rise of defined-outcome ETFs. They examine the unique features that set them apart from traditional investment funds, and how they provide risk-managed exposure. They also discussed how the underlying management of these products works.

Innovator’s Ashenden on Risk-Managed Exposure

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Financial stocks could see better earnings growth this quarter than analysts’ consensus, according to Bloomberg Intelligence’s macro model. In this episode of the Inside Active podcast, host David Cohne, BI mutual fund and active management analyst, along with co-host Gina Martin Adams, BI’s chief equity strategist, speak with Bill Nygren, chief investment officer, US equity, at Harris Associates and portfolio manager at the firm’s Oakmark Funds. They discuss Nygren’s views on bringing a private equity perspective to public equity investing, the need for a long-term view, why financials make up a large allocation in the Oakmark Fund (OAKMX) and the significance of management quality in investment decisions.

Financial stocks could see better earnings growth this quarter than analysts’ consensus, according to Bloomberg Intelligence’s macro model. In this episode of the Inside Active podcast, host David Cohne, BI mutual fund and active management analyst, along with co-host Gina Martin Adams, BI’s chief equity strategist, speak with Bill Nygren, chief investment officer, US equity, at Harris Associates and portfolio manager at the firm’s Oakmark Funds. They discuss Nygren’s views on bringing a private equity perspective to public equity investing, the need for a long-term view, why financials make up a large allocation in the Oakmark Fund (OAKMX) and the significance of management quality in investment decisions.

Oakmark’s Nygren Takes Private Equity Perspective

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The quality factor is ranked second on the BI Factor Scorecard as higher-quality companies are beating lower-quality ones against a backdrop of a more defensive market. On this episode of Inside Active, host David Cohne, mutual fund and active-management analyst with Bloomberg Intelligence, along with co-host and BI US quantitative strategist Christopher Cain, spoke with Tom Hancock, head of Focused Equity at GMO and portfolio manager for the GMO US Quality ETF (QLTY), about how the fund combines GMO’s history of integrating the quality factor in its research with the firm’s roots in value investing. They also discussed why profitability is such an important element of their quality-factor research, and how QLTY differs from its mutual fund counterpart.

The quality factor is ranked second on the BI Factor Scorecard as higher-quality companies are beating lower-quality ones against a backdrop of a more defensive market. On this episode of Inside Active, host David Cohne, mutual fund and active-management analyst with Bloomberg Intelligence, along with co-host and BI US quantitative strategist Christopher Cain, spoke with Tom Hancock, head of Focused Equity at GMO and portfolio manager for the GMO US Quality ETF (QLTY), about how the fund combines GMO’s history of integrating the quality factor in its research with the firm’s roots in value investing. They also discussed why profitability is such an important element of their quality-factor research, and how QLTY differs from its mutual fund counterpart.

GMO’s Hancock on the Importance of Profitability

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Since the US market can be profitable for European companies, any slowdown in the US economy could harm earnings in Europe, but also alleviate high valuations. On this episode of Inside Active, host David Cohne, mutual fund and active management analyst with Bloomberg Intelligence, along with co-host Laurent Douillet, senior equity strategist for Bloomberg Intelligence, spoke with Sarah Ketterer, Chief Executive Officer and Fundamental Portfolio Manager at Causeway Capital Management, including the Causeway International Value Fund (CIVVX). They discussed Causeway’s value investment philosophy, including its risk-adjusted return ranking model, as well as the criteria she looks for in potential holdings. They also spoke about how AI tools are being integrated into the investment process and where she sees investment opportunities in artificial intelligence. 

Since the US market can be profitable for European companies, any slowdown in the US economy could harm earnings in Europe, but also alleviate high valuations. On this episode of Inside Active, host David Cohne, mutual fund and active management analyst with Bloomberg Intelligence, along with co-host Laurent Douillet, senior equity strategist for Bloomberg Intelligence, spoke with Sarah Ketterer, Chief Executive Officer and Fundamental Portfolio Manager at Causeway Capital Management, including the Causeway International Value Fund (CIVVX). They discussed Causeway’s value investment philosophy, including its risk-adjusted return ranking model, as well as the criteria she looks for in potential holdings. They also spoke about how AI tools are being integrated into the investment process and where she sees investment opportunities in artificial intelligence.

Causeway’s Ketterer on Estimating Intrinsic Value

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Countries in Asia make up the top echelon of the BI Emerging Markets Scorecard, based on factors such as price performance, breadth and fundamentals. In this episode of Bloomberg Intelligence’s Inside Active podcast, host David Cohne, BI mutual fund and active management analyst, and co-host Marvin Chen, BI senior Asia equity strategist, speak with Sean Taylor, chief investment officer of Matthews Asia and portfolio manager for the Matthews Emerging Markets Equity Active ETF (MEM). They discuss the firm’s four-stage process of evaluating countries and Matthews’ portfolio-construction system that looks at marginal contribution of active risk. They also talk about the impact of AI in Asia and the implications of US Federal Reserve policies on emerging markets.

Countries in Asia make up the top echelon of the BI Emerging Markets Scorecard, based on factors such as price performance, breadth and fundamentals. In this episode of Bloomberg Intelligence’s Inside Active podcast, host David Cohne, BI mutual fund and active management analyst, and co-host Marvin Chen, BI senior Asia equity strategist, speak with Sean Taylor, chief investment officer of Matthews Asia and portfolio manager for the Matthews Emerging Markets Equity Active ETF (MEM). They discuss the firm’s four-stage process of evaluating countries and Matthews’ portfolio-construction system that looks at marginal contribution of active risk. They also talk about the impact of AI in Asia and the implications of US Federal Reserve policies on emerging markets.

Matthews’ Taylor on AI in Asian Emerging Markets

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Capital deployment has been increasing as companies flush with cash ratchet up share buybacks and dividend payments. On this episode of Inside Active, host David Cohne, mutual fund and active-management analyst with Bloomberg Intelligence, along with co-host and BI sector and small-cap strategist Michael Casper, spoke with Integrity Viking Funds CEO Shannon Radke and Chief Investment Officer Michael Morey about the investment process behind the Integrity Dividend Harvest Fund (IDIVX). They discuss Integrity’s three-tiered-goal system of evaluating companies, and the metrics they use for screening. They also examine dividend sustainability and why classic value investing still has a place in investors’ portfolios.

Capital deployment has been increasing as companies flush with cash ratchet up share buybacks and dividend payments. On this episode of Inside Active, host David Cohne, mutual fund and active-management analyst with Bloomberg Intelligence, along with co-host and BI sector and small-cap strategist Michael Casper, spoke with Integrity Viking Funds CEO Shannon Radke and Chief Investment Officer Michael Morey about the investment process behind the Integrity Dividend Harvest Fund (IDIVX). They discuss Integrity’s three-tiered-goal system of evaluating companies, and the metrics they use for screening. They also examine dividend sustainability and why classic value investing still has a place in investors’ portfolios.

Integrity’s Radke and Morey on Dividend Investing

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With equities in a fundamental rotation and being shaken by economic surprises, the market may be searching for new sector leadership. On this episode of the Inside Active podcast, host David Cohne, mutual fund and active analyst with Bloomberg Intelligence, along with co-host Gina Martin Adams, BI’s chief equity strategist, spoke with JPMorgan Asset Management’s portfolio manager Felise Agranoff, co-portfolio manager for JPMorgan Active Growth ETF (JGRO) about investing in quality companies with strong and sustainable competitive advantages and best-in-class management teams. They also discussed JPMorgan’s approach to assessing underappreciated growth opportunities, as well as the differences in researching mid-cap and large-cap funds.

With equities in a fundamental rotation and being shaken by economic surprises, the market may be searching for new sector leadership. On this episode of the Inside Active podcast, host David Cohne, mutual fund and active analyst with Bloomberg Intelligence, along with co-host Gina Martin Adams, BI’s chief equity strategist, spoke with JPMorgan Asset Management’s portfolio manager Felise Agranoff, co-portfolio manager for JPMorgan Active Growth ETF (JGRO) about investing in quality companies with strong and sustainable competitive advantages and best-in-class management teams. They also discussed JPMorgan’s approach to assessing underappreciated growth opportunities, as well as the differences in researching mid-cap and large-cap funds.

JPMorgan’s Agranoff on Differentiated Perspective

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Wellington’s Andrew J. Shilling and Clark R. Shields, sub-advisers to the Vanguard U.S. Growth Fund, talk about investing in companies with secular growth and competitive advantages in this episode of Bloomberg Intelligence’s Inside Active podcast. Host David Cohne, BI mutual fund analyst, and co-host Gina Martin Adams, BI chief equity strategist, spoke with Shilling and Shields about how they approach valuations through time-frame arbitrage and what they look for in management teams.

Wellington’s Andrew J. Shilling and Clark R. Shields, sub-advisers to the Vanguard U.S. Growth Fund, talk about investing in companies with secular growth and competitive advantages in this episode of Bloomberg Intelligence’s Inside Active podcast. Host David Cohne, BI mutual fund analyst, and co-host Gina Martin Adams, BI chief equity strategist, spoke with Shilling and Shields about how they approach valuations through time-frame arbitrage and what they look for in management teams.

Wellington’s Shilling, Shields on Secular Growth

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Reports of active management's demise have been greatly exaggerated. Active continues to grow and evolve in ETFs while mutual funds prosper and define benefit plans. Bloomberg Intelligence strategy team uncover active opportunities and gleam insights from active managers and those who cover the industry.

Reports of active management's demise have been greatly exaggerated. Active continues to grow and evolve in ETFs while mutual funds prosper and define benefit plans. Bloomberg Intelligence strategy team uncover active opportunities and gleam insights from active managers and those who cover the industry.

Inside Active by Bloomberg Intelligence

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