In concentrated markets, investors can become wary of portfolios dominated by sentiment factors. A simple crowding-score-based constraint can help investors identify securities most at risk of de-rating. 

“Deconglomeration” in the 1980s signaled a shift to corporate specialization, particularly in the U.S. We found that diversified firms have tended to lag the profitability and growth of their single-industry counterparts.

Over the last 30 years, high geopolitical risk has been associated with lower equity returns and higher forecast volatilities. We show that measures of geopolitical risk have provided useful information beyond conventional measures of uncertainty. 

We found a strong historical correlation between a company’s MSCI ESG Rating and its cost of capital in both equity and debt markets. Firms assessed as the most resilient to financially material sustainability-related risks financed themselves more cheaply. 

We segmented India’s public equity market to study patterns in its factor, thematic and industry exposures. And to assess how the current market profile could change, we also analyzed private firms that may be in the pipeline to become public. 

Eclipsing equity and bond yields and high crowding may be signs of a vulnerable equity market. We compare equity/bond yield spreads in the major regional markets along with crowding in sectors and regions.  

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. 

Following extensive research showing an improvement in risk-adjusted returns for companies with higher ESG ratings, we look beyond what a company’s ESG issues were to how that company dealt with them — and the impact that had on stock-specific risk.