Strategy Commentaries

Global equity franchise

Global equities continued to register gains in the third quarter despite bouts of elevated volatility, especially during the month of August. The primary causes that spooked investors were softer economic data in the United States, along with a surprising rate hike by the Bank of Japan. However, these were offset somewhat by interest rate cuts in multiple regions later in the quarter, along with a major stimulus announcement from China. Learn more about which regions, sectors, and types of equities led the market from the RS Global team.

• RS Global
• RS International

Value-oriented equity franchise

At first blush it may appear that the song remained the same for the U.S. equity market. The third quarter saw a continuation of this year’s rally, with the broad market, as measured by the S&P 500® Index, delivering returns of almost 6%. Where the tune has changed, however, is in market breadth, which is good news for value-oriented strategies. In fact, we’ve seen a downright rotation away from large-cap tech stocks into more value-oriented names and, importantly, into the seemingly long-ignored small caps. Learn more about the outlook for value stocks from the RS Value team.

• RS Large Cap Value
• RS Mid Cap Value
• RS Small Cap Value
• RS Concentrated All Cap
  

Domestic and international equity franchise

Equities delivered solid performance during quarter as investors gained more confidence in the U.S. economy. Moderating but still strong labor markets, cooling inflation, solid economic growth and lower interest rates supported the notion that a hard economic landing was a low probability event. But what’s the outlook ahead now that the Fed has cut rates? THB Asset Management reminds us that despite the uncertainties, secular economic improvements such as productivity can serve as a powerful catalyst for both earnings and multiples of small and mid-size stocks. Read more.

• THB Small Cap Core 
• THB Mid Cap
• THB International Opportunities
• THB Micro Cap

Emerging markets equity franchise

The third quarter was fascinating for emerging markets investors, replete with conflicting signals, periods of sharp reversals, and elevated market volatility. The U.S. Federal Reserve’s 50-bps cut in September, a corresponding weaker U.S. dollar, and the Chinese government’s plans to stimulate the property market and domestic consumption are all positives for the asset class. However, optimism must be balanced by geopolitical risks and the unknown policy impact (i.e., possible tariffs) from the looming U.S. presidential election. Read more about emerging markets from Sophus Capital.

• Sophus Emerging Markets
• Sophus Emerging Markets Small Cap

Growth-oriented equity franchise

The U.S. equity market continued its recent strong performance in the third quarter, but it was notable that market leadership shifted beneath the surface as investors began rotating out of large-cap tech stocks and into smaller, less-recognized names. Even after this past quarter’s shift down the cap spectrum, we believe that the current investment landscape continues to offer intriguing opportunities for secular growth companies outside of the mega-cap growth category. Learn more from the RS Growth team.

• RS Large Cap Growth
• RS Mid Cap Growth
• RS Small/Mid Cap Growth
• RS Small Cap Growth

Growth and core equity franchise

Although equities rallied during the third quarter, the script flipped within the Russell 3000® Index benchmark as value stocks outperformed their growth counterparts. This reversal was driven largely by price gains in the small- and mid-cap stocks. Learn how Munder Capital Management has been positioning portfolios given the new market leadership and the first Federal Reserve rate cut since 2020. Read more about which sectors and stocks have been driving recent performance.

• Munder Mid-Cap Core Growth
• Munder Multi-Cap