Global Equities

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.

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.

The AI boom has increased demand for data centers, but US electric utilities lack the capacity to power them. This has led to a rise in self-generation solutions, benefiting companies like Schneider Electric and National Grid. The issue was a key theme at the recent Data Center Dynamics trade show.

Uncertainty and volatility in today’s environment have highlighted the benefits of our disciplined Quality Growth philosophy, focused on proven businesses with inherent resilience and durability. Given the narrow tailwinds from the prior two years, select quality companies are attractively valued given their defensive growth characteristics.

As the exuberance we’ve seen over the past few years fades, our Quality Growth team looks to find resilience in industries that are shielded from the effects of tariffs and the volatility around AI.

Investigative analyst Zhen Li recently attended the Shanghai’s second Global Developer Conference. Zhen’s on-the-ground research reveals concerns about the viability and sustainability of DeepSeek’s model given the intense competition in China's AI sector and lack of clarity around monetization of AI models.

Factor investing has long explained market behavior, but its flaws—timing dependencies, rigid linearity, and backward-looking assumptions—limit predictive power. Can AI overcome these? This Expl(AI)ning episode dissects factor evolution, their pitfalls, and how machine learning enables dynamic models. Dive into quantitative investing’s future.

People and organizations demonstrate their moral compass in challenging conditions. In 1999, portfolio manager Ed Walczak made a tough call to stick to his investment principles. Despite the pressure to conform to the market trend, he chose to invest in undervalued insurance companies, a decision that paid off when the internet bubble burst.

Is the tech market’s bull run, much like a steamroller, starting to reverse course? Efficiency gains recently announced by DeepSeek have raised questionsabout the commoditization of LLMs and the potential overinvestment in data centers, shifts that could significantly impact the industry and investors.

2025 is poised to be another positive yet complex year for equities. Balancing core positions in industries driven by secular trends – like semiconductors, AI hyperscalers, and the energy transition – with opportunistic exposures that can benefit from cyclical or policy-induced rebounds can help navigate the challenges ahead.

The mining industry is entering a green supercycle, driven by demand for metals and minerals needed for decarbonization. Despite increased competition and deeper mining, technological advancements are boosting productivity and reducing emissions. This presents compelling long-term investment opportunities in this evolving industry.

The forces driving today’s markets are making it especially hard for investors to find the right balance. How can investors tap into the burgeoning power of AI without taking too much risk? Learn how our Quality Growth team manages risk while maintaining a healthy equilibrium.