Insights

For additional information, please contact us.

Equity markets delivered solid gains during the third quarter, propelled by significant upward revisions to corporate earnings prospects, low interest rates, and a US Federal Reserve policy announcement suggesting that interest rates will be kept low for the foreseeable future.  COVID-19 case counts remain elevated and economic conditions generally remain pressured, but recent data has been trending better than consensus expectations.  As stock markets appear to be discounting further economic improvement, they continue to be led by a small group of highly-valued "new economy" stocks that a

Quarterly Letter

Equity markets delivered solid gains during the third quarter, propelled by significant upward revisions to corporate earnings prospects, low interest rates, and a US Federal Reserve policy announcement suggesting that interest rates will be kept low for the foreseeable future.  COVID-19 case counts remain elevated and economic conditions generally remain pressured, but recent data has been trending better than consensus expectations.  As stock markets appear to be discounting further economic improvement, they continue to be led by a small group of highly-valued "new economy" stocks that a

Emerging market assets rallied strongly to pre-COVID-19 levels, driven by the recovery in economic activity in most Asian economies and extremely accommodative global monetary conditions.  The equity market recovery was led by North Asian mega-cap technology stocks, which benefited from strong near-term demand trends.  Emerging market currencies were notable for their wide disparity of performance.  Strength in North Asian currencies was offset by weakness in Latin American and Eastern European currencies, where the paths of economic recovery remain unclear.  Given limited fiscal flexibilit

July 16, 2020 -- Altrinsic Global Advisors, LLC today announced the appointment of Sara Sikes as Head of Client Experience. In this newly created role, Sikes will provide strategic direction and oversight to the firm's client service, communications, and marketing efforts.

The Altrinsic International Equity Composite gained 13.8% during the second quarter, as measured in U.S. dollars. By comparison, the MSCI EAFE Index and the MSCI All Country World ex-U.S.Index gained 14.9% and 16.1%, respectively, led by richly valued technology stocks. Measures to reopen economies, increased optimism surrounding a vaccine, and hopes for a V-shaped recovery have been supportive, but the primary driver of the rally in risky assets has been the announcement of extraordinary fiscal and monetary stimulus, amounting to 29% of global GDP (Table 1).

Quarterly Letter

The Altrinsic Global Equity Composite gained 14.6% during the second quarter.  By comparison, the MSCI World Index gained 19.4% as measured in U.S. dollars, led by U.S. equities (S&P 500 +20%) and richly valued tech stocks (NASDAQ +30.6%). Measures to reopen economies, increased optimism surrounding a vaccine, and hopes for a V-shaped recovery have been supportive, but the primary driver of the rally in risky assets has been the announcement of extraordinary fiscal and monetary stimulus, amounting to 29% of global GDP (Table 1).

Decisive global fiscal and monetary policy responses to COVID-19 drove a sharp re-rating in asset prices in the second quarter, including emerging market equities that gained 18%, paring their losses from the prior quarter.  The impact of the unprecedented fiscal expansion, monetary easing, and widespread suspension of personal and commercial loan repayments will take years to unwind and leaves emerging market policy makers little room for error going forward.  This crisis will almost certainly inject an additional facet into debates around global trade as governments try to protect and str

The first quarter of 2020 was one of the worst on record, and it certainly felt like it.  In a matter of weeks, a virus that likely emerged from a wet market in Wuhan, China, brought the global economy to a halt.  A Saudi-Russian induced oil price war exacerbated the decline.  Only cash, select government bonds, and gold provided refuge from the carnage.  There is tremendous uncertainty in the near term, as policymakers inject wartime stimulus into economies, creating a bridge until health risks subside and economic activity recovers.  Opportunities are emerging amid the associated uncertai

The first quarter of 2020 was one of the worst on record, and it certainly felt like it.  In a matter of weeks, a virus that likely emerged from a wet market in Wuhan, China, brought the global economy to a halt.  A Saudi-Russian induced oil price war exacerbated the decline.  Only cash, select government bonds, and gold provided refuge from the carnage.  There is tremendous uncertainty in the near term, as policymakers inject wartime stimulus into economies, creating a bridge until health risks subside and economic activity recovers.  Opportunities are emerging amid the associated uncertai

In the ten years since the global financial crisis, emerging markets have faced significant challenges, including a collapse in commodity prices, QE-induced financial market volatility, Russia’s annexation of Crimea, and corruption scandals in Brazil.  Largely, their people, institutions, and governments rose to meet those challenges and charted a path forward.  With this COVID-19 outbreak, East Asian emerging market countries, such as South Korea and Taiwan, are managing the crisis with competence and efficiency.

Pages