×
×
×
×
×

Tell us once and we'll remember.

I'm an...

Don't worry, you can always change this selection using the icons at the top left of the site.

One of the things our process is designed to identify is unsustainable extremes we can exploit, particularly when investor behavior prices either too much optimism or pessimism into equity valuations. Right now, the market continues to confidently price in a soft economic landing and the continued dominance of U.S. mega cap growth stocks. We believe this zealous optimism has overshadowed the growing risks posed by a dangerous combination of rising equity multiples and increasing interest rates.

Today we have anything but a uniformly priced market. It is bearish for U.S. indexes, while providing a great opportunity to look for mispriced stocks with strong fundamentals beyond the concentrated top of those indexes. The value of value relative to growth is back to historic highs, being driven by the extreme concentration of the top seven stocks in the S&P 500 Index (Exhibit 1). Never has so much liquidity been sucked into so few stocks, and the risk may prove a black hole for capital and weigh on returns due to increased volatility from higher correlations. continue...

Insights for Informed Investments

Subscribe Now!

Let's Connect...

Want to learn more? : Email Us
or

Related Perspectives

Large Cap Growth Monthly Update
Large Cap Growth April 2026: A risk-on April provided a measure of confidence in the Strategy’s ability to participate effectively in strong up markets.
Large Cap Growth Strategy 1Q26 Update
Portfolio Manager Margaret Vitrano highlights a period of stabilization for the Strategy supported by a diversified set of contributors outside technology.
Dividend Strategy 1Q26 Update
Portfolio Manager Mike Clarfeld breaks down portfolio performance in the first quarter, highlighting how diversification drove relative outperformance, outlining key positioning moves and sharing his outlook for dividend stocks in a volatile market.
Inflation and Higher Rates: What They Mean for Infrastructure
Energy-driven inflation and geopolitical risk increase the likelihood of higher-for-longer interest rates, which listed infrastructure has several mechanisms for passing through to earnings.
The Rotation to Resilience
Market leadership is broadening beyond mega-cap AI winners toward “durability” characteristics such as predictable earnings, strong free cash flow and tangible asset backing — making hard-asset, low-obsolescence (HALO) stocks particularly attractive.
MORE