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Ashish Lodh

Ashish Lodh

Executive Director, MSCI Research

Ashish Lodh is a Executive Director in the Equity Solutions Research team based in London. He focuses on quantitative research across MSCI equity index solutions including factor and ESG indexes. Previously, he was Deputy Research Director at ERI Scientific Beta where he conducted research in equity multi-factor solutions. Ashish holds a B.S. in Chemical Engineering from the Indian Institute of Technology and a master’s degree in Finance from ESCP in Paris.

Research and Insights

Articles by Ashish Lodh

    Factor and Sector Behavior Across Macro Regimes

    5 mins read Blog | Apr 24, 2024 | Ashish Lodh

    Over the last nearly 50 years, changes in interest rates have had a more pronounced impact on the performance of factor and sector indexes than the rate level itself. Insights from these findings may be helpful in realigning portfolios to a shifting macro view. 

    Assessing Exposures and Risks in the Middle East

    3 mins read Quick Take | Dec 13, 2023 | Ashish Lodh

    Geopolitical events tend to have a spillover effect on multinational companies in the affected geographic region. In view of the Israel-Gaza crisis, we analyzed the economic exposures and risks of companies in the MSCI ACWI IMI to the Middle East. 

    How Do Small Caps Fit into a Deglobalized World?

    2 mins read Quick Take | Nov 22, 2023 | Saurabh Katiyar, Ashish Lodh

    In response to deglobalization, multinational corporations are making changes to their logistics networks. Using MSCI Economic Exposure data, we examine how small-cap stocks around the world may be impacted. 

    Is Dispersion in Small Caps Linked to Selection Opportunities?

    2 mins read Quick Take | Nov 15, 2023 | Saurabh Katiyar, Ashish Lodh

    Across regions — U.S., international and emerging markets — small-cap stocks have displayed higher cross-sectional volatility than other market-cap segments. Small caps’ wide dispersion indicates potentially fruitful stock-selection opportunities.

    A Roadmap to Personalizing Model Portfolios: Scaling with Purpose

    Research Report | Oct 19, 2023 | Yuliya Plyakha Ferenc, Ashish Lodh

    High-net-worth investors are seeking portfolios tailored to their financial goals, personal values and tax situation. Wealth managers need scalable solutions. We explore using factor, thematic and sustainable investing to customize portfolios.    

    Understanding MSCI ESG Indexes: Methodologies, Facts and Figures

    Research Report | Oct 11, 2023 | Guido Giese, Ashish Lodh, Manish Shakdwipee, Saurabh Katiyar

    We explore the methodologies behind the MSCI ESG Indexes to see how they integrate ESG considerations. We also assess the differences of these approaches in terms of the financial and ESG characteristics to understand potential trade-offs. 

    How Concentrated Are Small Caps Today?

    2 mins read Quick Take | Oct 3, 2023 | Ashish Lodh, Saurabh Katiyar

    Two measures of concentration risk indicate historically low levels for small-cap stocks in contrast to the higher levels of their large-cap counterparts.

    The Ups and Downs of Small Caps and Inflation

    2 mins read Quick Take | Aug 21, 2023 | Ashish Lodh, Saurabh Katiyar

    Inflation appears to have peaked at the end of 2022, but it remains influential in capital markets. We analyzed nearly 50 years of data to assess how small caps’ performance has changed with shifts in both the level and trend of inflation.  

    Small Caps Have Been a Big Story After Recessions

    6 mins read Blog | Jul 17, 2023 | Saurabh Katiyar, Ashish Lodh

    Some investors are already evaluating opportunities offered by a post-slowdown world. One of these opportunities is small-cap stocks, which have historically outperformed large caps, especially after recessions.  

    Analyst Sentiment as a Factor Consideration

    Research Report | Jun 29, 2023 | Waman Virgaonkar, Abhishek Gupta, Ashish Lodh, Mehdi Alighanbari

    An analyst’s equity opinion encompasses how different interrelated forces may impact the future performance of a company. We sought to define the analyst-sentiment factor, while assessing its relationship with other traditional equity style factors. 

    Quality Time: Understanding Factor Investing

    Research Report | Jun 28, 2023 | Ashish Lodh, Subhajit Barman

    The past decade's market turbulence, rising inflation and fluctuating rates, has emphasized the importance of high-quality firms. This update to earlier research examines the quality factor’s role in navigating an ever-changing landscape. 

    Why Energy Firms’ Performance Varied: US vs. Europe

    2 mins read Quick Take | Jun 2, 2023 | Ashish Lodh

    Since April 2020, companies in the oil, gas and consumable-fuel industry outperformed broad equity markets across the globe. Moreover, U.S. firms have outperformed their European counterparts. What drove this performance?

    Bank Failures Were Reflected in News-Sentiment-Factor Scores

    2 mins read Quick Take | Apr 26, 2023 | Ashish Lodh

    Looking at the collapse of Silicon Valley Bank and Signature Bank, and the takeover of Credit Suisse through the lens of factors provides a unique view of how markets reacted to questions about the health of banks and other financial institutions.

    The Russia-Ukraine War and the Markets: One Year Later

    Podcast | Feb 23, 2023 | Ashish Lodh, Andy Sparks, Tom Leahy, Elchin Mammadov

    While the direct market impact of Russia’s invasion has lessened over time, there have been longer lasting effects that have exacerbated investor concerns around inflation, rising rates and central bank actions around the globe. We examine the issue through a multi-asset-class lens.

    Global Markets One Year After Russia’s Invasion of Ukraine

    11 mins read Blog | Feb 21, 2023 | Ashish Lodh, Andy Sparks, Tom Leahy, Elchin Mammadov

    Markets have partially recovered since Russia invaded Ukraine, but questions remain about inflation, economic growth and central banks’ actions. Understanding last year’s performance across asset classes, may help with investment decisions in 2023.

    Innovation Investing and Equity Allocations

    Research Report | Oct 14, 2022 | Saurabh Katiyar, Mehdi Alighanbari, Ashish Lodh, Ketaki Garg

    Innovation investing has gained momentum over the past few years. Our research focuses on systematically investing in companies that seek to capitalize on opportunities created by megatrends and innovation-driven themes.  

    Net-Zero Alignment for Multi-Asset-Class Portfolios

    7 mins read Blog | Sep 19, 2022 | Ashish Lodh, Guido Giese, Afsaneh Mastouri

    Asset owners who want to keep global warming below 1.5 degrees Celsius (1.5°C) have a tough row to hoe.

    The Relationship Between Inflation and Commodities

    2 mins read Quick Take | Jul 15, 2022 | Ashish Lodh, Ana Harris, Fotios Kassianidis

    While global inflation has accelerated over the last few months, the expectation for some countries is that inflation has peaked while others anticipate further increases.

    Emerging Markets: Sector and Industry Diversity

    2 mins read Quick Take | Jun 29, 2022 | Ashish Lodh, Ana Harris, Fotios Kassianidis

    Industry and revenue lenses can provide additional insights to investors beyond a traditional sector analysis.

    The Impact of ESG and Climate on Equity Yield

    6 mins read Blog | Jun 28, 2022 | Ashish Lodh

    Investors are increasingly incorporating ESG and climate considerations in asset selection. With that in mind, our research focuses on ESG and climate profiles in relation to equity yield and tracking error.

    US Inflation and Interest Rates: A Sectors’ Perspective

    3 mins read Quick Take | Jun 1, 2022 | Ashish Lodh, Ana Harris, Fotios Kassianidis

    Inflation in the U.S. has accelerated over the last 18 months to a high of 8.5% in March (8.3% in April), a level that was last observed in the early 1970s.

    Energy-Sector Drivers

    3 mins read Quick Take | May 18, 2022 | Ashish Lodh, Ana Harris, Fotios Kassianidis

    Looking at sectors through a factor lens may provide additional insights for investors in terms of explaining performance.

    Market Uncertainty Has Favored Low-Volatility Indexes

    2 mins read Quick Take | Apr 11, 2022 | Peter Zangari

    The global market rally that began in April 2020 came to a halt with a sell-off that started at the end of last year and increased in intensity this February with the invasion of Ukraine.

    Valuations Can Help in Evaluating Sectors

    2 mins read Quick Take | Apr 6, 2022 | Ashish Lodh, Ana Harris, Fotios Kassianidis

    Along with other factors, comparing current sector valuations to longer-term averages has helped investors as they make decisions about whether to rotate in or out of specific sectors.

    Sector Momentum

    2 mins read Quick Take | Mar 11, 2022 | Ashish Lodh, Ana Harris, Fotios Kassianidis

    Our research has shown that an industry momentum approach, which involves investing in industries with the best recent performance, outperformed broad-market equity indexes in developed-market regions from 2000 to 2021.

    Changing Sectors, Changing Correlations

    3 mins read Quick Take | Feb 16, 2022 | Ashish Lodh, Ana Harris, Fotios Kassianidis

    When considering new sector exposures in their portfolios, investors can review correlations between existing and potential allocations to better understand whether these sectors’ returns moved in the same direction or if exhibited a differentiated return pattern. 

    Sector Leaderboard Changed as Inflation Picked Up

    2 mins read Quick Take | Feb 2, 2022 | Ashish Lodh, Ana Harris, Fotios Kassianidis

    U.S. Fed Chairman, Jerome Powell, has made it official: We can no longer label the period of current inflation as transitory. 

    Have Sectors Driven Stock Returns?

    2 mins read Quick Take | Jan 19, 2022 | Ashish Lodh, Ana Harris, Fotios Kassianidis

    When investors construct portfolios, they may do so based purely on bottom-up stock selection, or they may incorporate an element of top-down construction by adjusting the portfolio’s allocation to sectors, countries or factors.

    Hotter Inflation Set Some Styles and Sectors on Fire

    7 mins read Blog | Jan 11, 2022 | Ashish Lodh, Hitendra D Varsani

    Whether due to stimulus, deglobalization, decarbonization or an overheating economy, higher inflation could have an impact on style-factor and sector performance. We investigate this impact in the context of two potential economic-growth regimes.

    Does Small Size Mean Less Opportunity in a Low-Carbon World?

    2 mins read Quick Take | Sep 21, 2021 | Abhishek Gupta, Ashish Lodh, Ana Harris

    Small caps are usually thought of as having a greater carbon footprint relative to their larger counterparts. 

    ESG Credentials: How Have Small Caps Stacked Up?

    3 mins read Quick Take | Sep 8, 2021 | Abhishek Gupta, Ashish Lodh, Ana Harris

    As more investors incorporate ESG considerations into their investment decisions, some companies have changed their behavior, which has led to changes in their ESG profiles.

    Sizing Up Small Caps

    6 mins read Blog | Aug 25, 2021 | Abhishek Gupta, Ashish Lodh

    Given small-cap outperformance since March 2020, investors are asking how these stocks size up in terms of short-term valuation, sentiment and macro outlook? Longer term, might small caps help capture opportunities around thematic investing megatrends?

    How Have Small Caps Navigated Risk-On and Risk-Off Environments?

    3 mins read Quick Take | Aug 11, 2021 | Ashish Lodh, Abhishek Gupta, Ana Harris

    Market sentiment isn’t static, and we have seen that recently with the gradual reopening of the economy and its impact on the performance of small-cap companies.

    Bringing a Style Lens to Small Caps

    2 mins read Quick Take | Jul 28, 2021 | Abhishek Gupta, Ashish Lodh, Ana Harris

    Another way to deepen our understanding of small-cap stocks is to look at them through a style-factor lens. 

    Hedging Inflation with Equities

    6 mins read Blog | Jul 16, 2021 | Ashish Lodh, Jean-Maurice Ladure

    Equities have traditionally been viewed as a hedge against inflation, based on the assumption that companies’ revenues adjust for inflation over time. But what has been the short-term impact on equity portfolios?

    Momentum on a Value Hunt

    5 mins read Blog | Jun 2, 2021 | Abhishek Gupta, Ashish Lodh

    Momentum, by definition, rotates into securities with recent outperformance. That said, investors who view value and momentum as contra-signals may have questions about the value-momentum convergence and the divergence of momentum and growth.

    Factor Investing Held in High-Volatility/-Concentration Period

    5 mins read Blog | Apr 23, 2021 | Abhishek Gupta, Ashish Lodh

    U.S. equity markets have experienced increased volatility coupled with concentration in a handful of megacap companies. Has this hampered investors’ ability to capture factors effectively? Have stock-specific risks dominated factor indexes?

    An ‘ESG-First’ Approach to Portfolio Construction

    8 mins read Blog | Jan 19, 2021 | Jean-Maurice Ladure, Ashish Lodh

    A new administration in the U.S. and ESG-related regulations in Europe may further increase investors’ sustainability focus. We examine an “ESG-first” approach to integrating measurable ESG and climate considerations into portfolios.

    Kuwait’s Move from Frontier to Emerging Market

    6 mins read Blog | Dec 14, 2020 | Saurabh Katiyar, Ashish Lodh

    Kuwait’s reclassification from frontier to emerging market and inclusion in the MSCI Emerging Markets Index provides investors exposure to yet another Gulf Cooperation Council member, one that has worked to open its doors to foreign investors.

    How Portfolio-Weighting Schemes Affected Factor Exposures

    6 mins read Blog | Oct 15, 2020 | Abhishek Gupta, Ashish Lodh, Subhajit Barman

    Single-factor portfolios seek high exposure to a target factor and limited exposure to non-target ones. We assess the impact that common portfolio weighting schemes have on these exposures, as well as on portfolio efficiency, concentration and investability.

    How to Describe a Factor

    5 mins read Blog | Sep 10, 2020 | Abhishek Gupta, Ashish Lodh, Subhajit Barman

    How to define a factor? It’s a challenge for asset owners and wealth managers in evaluating how well factor products meet investment objectives. We found an improved and more robust measure can be formed by combining multiple descriptors. 

    Did Value-Factor Exposure Deliver for Value Funds?

    5 mins read Blog | Jun 29, 2020 | Saurabh Katiyar, Ashish Lodh, Vishad Bhalodia

    Building on previous MSCI research into the nuanced performance of the value factor, including the impact of sectors and other style factors, we look at how exposure to value drove the performance of actively managed value funds.

    ESG and the cost of capital

    Blog | Feb 25, 2020 | Ashish Lodh

    We know a lot about the relationship between companies’ ESG characteristics and financial performance. But was there a correlation between ESG scores and cost of capital?

    Beware high dividend yield traps

    Blog | Oct 25, 2019 | Saurabh Katiyar, Jean-Maurice Ladure, Ashish Lodh

    During low interest-rate, high-volatility environments, some investors have turned to high dividend-paying stocks. However, overly simplistic approaches to selecting dividend-paying securities exposed investors to potential “yield traps.” Could these traps have been avoided?