Latest Blog: Fireside Reading - 03/30/2023
- BACK TO CIO INSIGHTS BACK TO ARTICLES & INSIGHTS HOME
Investment Insights are written by Angeles' CIO Michael Rosen
Michael has more than 30 years experience as an institutional portfolio manager, investment strategist, trader and academic.
IT'S A BIG WORLDPublished: 11-03-2014
With apologies to Walt Disney, the global economy is getting, well, more global, and, intuitively, companies’ sensitivities to global macro factors increase in proportion to their global revenues.
When we look at conventional, market-cap weighted indices, we (implicitly) assume that 100% of the each company’s stock price is driven by domestic factors. We know, obviously, that this makes no sense logically for companies that operate globally. For example, when we own Samsung implicitly ascribe 100% of that holding to our Korea exposure. But the company gets less than 10% of its revenue from Korea, and it’s fortunes are dependent on non-Korean factors more than domestic ones. This statement holds true for many multinational corporations.
The chart shows the capitalization weights of the MSCI ACWI versus the revenue exposures of the same ACWI companies. It’s interesting that the differences are almost entirely between the US and EM: Europe, UK, Japan show little change. But the US weight falls in half and the EM weight triples when view by revenue rather than by capitalization.
No benchmark is perfect, but I suspect that over time we will gravitate to evaluating holdings on factors other than solely market capitalization.PRINT THIS ARTICLE
Falling Behind 08-25-2016
It's good to be tall.Tall people tend to be more highly educated, earn more over their careers, are higher in the social ...READ BLOG POST
Distortion or Reflation? 05-21-2015
A month ago, Germany could borrow for 10 years at a rate of 0.06%. Lenders were also happy that day to earn 0.47% for ...READ BLOG POST
2016 - 1st Quarter Commentary 05-17-2016
To read more, download the full 16 page PDF: ...READ BLOG POST
We strive build portfolios of best-in-class investment managers across all asset classes. If you would like to be considered for our portfolios, please contact us using our manager inquiries form.
- MANAGER INQUIRIES
SUBSCRIBE TO ANGELES' INSIGHTS
Get the latest investment information and stay on top of market trends.
429 SANTA MONICA BLVD,
SANTA MONICA, CA 90401
375 PARK AVENUE,
NEW YORK, NY 10152
400 N. MICHIGAN AVE,
CHICAGO, IL 60611
5151 SAN FELIPE ST,
HOUSTON, TX 77056
How Can We Help You?Institutional Investors
Fully resourced investment office built to manage sophisticated client investment programsPrivate Wealth
Personalized discretionary portfolio and wealth management services powered by institutional processInvestment Management
Rigorous process and a flexible platform designed to meet client needsArticles & Insights
Latest insights and perspectives from the Angeles teamContact Us
Get in touch