Equities

Backtesting can reveal powerful insights—or create dangerous illusions. In Part I of our mini-series, we show how biases and shortcuts can inflate results, using a simple momentum strategy as an example. Learn why careful design matters before moving from simulation to real-world investing.

ESG frameworks have faced rising political pushback and growing skepticism, with some investors questioning the feasibility of climate goals under current political and economic conditions. We believe, even during turbulent times, the transition to a low-carbon economy is here to stay. Read the latest Impact Report for more insights.

With rising temperatures, many investors are drawn to companies that offer adaptation solutions. While adaptation is essential, mitigating climate change and decarbonizing the economy also remain vital. Discover where adaptation and mitigation intersect – particularly in the realm of cooling – and how they can interact to create a more sustainable world.

Following years of underperformance, emerging market equities are leading global markets in 2025 to date, driven by a softer US dollar, policy reforms, and renewed investor confidence. With valuations still discounted and structural tailwinds in place, this rally signals a potential long-term shift in global equity dynamics.

International equities offer long-term structural growth opportunities. Europe is undergoing an economic transformation through defense, technology, and infrastructure investments. In our view, rising US risks, like fiscal deficits, underscore the need for diversification.

Why rely on one model when many do better? By combining multiple forecasts, ensembles tend to deliver more accurate and resilient results. This first article in our two-part series explores the theory behind model ensembles, linking classic forecasting research with today’s financial machine learning. Discover why combining models consistently outperforms relying on a single predictor.

Has the energy transition stalled due to weakening US policy support? We don’t believe so. In our view, this negative narrative is overly exaggerated and fails to recognize the increasing use of certain mature renewable technologies due to their strategic importance, economic competitiveness, faster implementation and limited technology risks.

Markets inevitably shift, but global diversification endures. A thoughtfully constructed portfolio that combines leading US and non-US companies can offer meaningful advantages to long-term investors: enhanced performance potential, compelling valuations and access to growth industries where the US lags.

Quitting is often misunderstood as weakness. But in investing, selling is the overlooked half of decision-making, hindered by biases like sunk cost fallacy or FOMO. In our view, knowing when to walk away is essential for preserving capital and seizing better opportunities.

The pace of progress in AI is extraordinary. But will it displace popular music or broader media in the near term? We continue to monitor developments closely, particularly in hybrid human-AI creative workflows, evolving rights frameworks, and new monetization models that could shift competitive dynamics over time.

Are there lessons we can already learn from April’s blackout in Spain and Portugal? We believe so. Electrification lies at the heart of the energy transition. With increased investment, resilience can improve and alongside increased storage capacity, we can unlock the potential of the grid.

In our latest Quality Conversations videos, discover how quality companies—those with strong franchises, pricing power, and unlevered balance sheets—can thrive in uncertain markets. By navigating inflation, shifting economic cycles, and interest rate volatility, these "masters of their own destiny" appear to offer resilience and long-term growth potential.