The outperformance of software and low volatility relative to the S&P 500 has ceased; global stocks and U.S. small caps have started to outperform the U.S. equity benchmark gauge.
“Extreme positioning is contributing to the factor reversal,” writes Evercore ISI head of portfolio strategy Dennis DeBusschere. “Based on the latest 13f data, active managers have taken their underweight in Traditional Value to a new all-time low while boosting exposure to Expected Growth.”
This article was provided by Bloomberg News.