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Q2 2017 PSN Top Guns – The Bulls Roll On

 

Void of volatility, U.S. equity markets continued to climb to new heights during the second quarter. Strong corporate earnings outweighed chaos in the White House, political uncertainty, and global unrest, as investors continued to push stocks higher, resulting in a 3.02% gain for the Russell 3000 index. Despite the much-anticipated June interest rate hike, equities continued to receive a boost from low interest rates, low inflation, and low unemployment.

 

Investors were rewarded by investing on the growth side of the style spectrum, as the Russell 3000 Growth index (+4.65%) outperformed the Russell 3000 Value index (1.29%) by 3.36%. Healthcare and technology sectors contributed to the positive performance, while energy and telecommunication sectors were detractors. Below are some of the strategies that make up the PSN Top Guns Small Cap Growth Universe.

 

  • Weatherbie Capital, LLC: Specialized Growth Equities (+12.5% for the quarter)
  • Friess Associates, LLC: Small Cap Concentrated Composite (+12.0% for the quarter)
  • Granahan Investment Management, Inc.: Small Cap Focused Growth (+10.9% for the quarter)

 

Foreign equities, particularly emerging markets, continued to outpace U.S. equities. An improving global economy, a weaker U.S. dollar, and a “risk-on” environment helped emerging markets extend its hot streak with another stellar quarter, as the MSCI Emerging Markets index ended the quarter up 6.38%. Strategies with increased exposure to Chinese equities performed well, as Chinese markets set the pace for emerging markets. The following strategies made the PSN Top Guns list for the Emerging Markets Universe.

 

  • Baillie Gifford Overseas Limited: Greater China Equities (+15.3% for the quarter)
  • Pioneer Investments: Emerging Markets Equity (+12.4% for the quarter)
  • Van Eck Associates Corporation: Emerging Markets Equity Strategy (+12.1% for the quarter)

 

Despite an expected interest rate hike by the Federal Reserve, investors were rewarded with moderate gains by going out longer on the yield curve, as the Bloomberg Barclays U.S. Long Government/Credit index posted a +4.39% return for the second quarter. Investors also experienced a flattening U.S. Treasury yield curve, as short-term interest rates increased and long-term interest rates decreased due to weak inflation data and strong investor demand. Below are some of the strategies that make up the PSN Top Guns Long Maturity Universe.

 

  • Fidelity Institutional Asset Mgmt.: Long U.S. Treasury STRIPS (+6.7% for the quarter)
  • Barrow, Hanley, Mewhinney & Strauss: Extended Duration Fixed Income (+6.5% for the quarter)
  • NISA Investment Advisors, LLC: 15+ STRIPS Fixed Income Composite (+5.9% for the quarter)

 

The complete list of PSN Top Guns, and an overview of the methodology, can be located on www.informais.com under the “Resources” tab.  If you do not have a login, you may register for complimentary access.  For more details on the methodology behind the PSN Top Guns Rankings, or to purchase PSN Top Guns Reports, contact Ruth Calderon at ruth.calderon@informais.com.

 

Ryan Nauman
VP, Product and Market Strategist
Informa Investment Solutions
Tel: (800) 789-5323
Ryan.Nauman@informais.com
www.informais.com

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