Cross-Asset Strategist & Quantitative Analyst, Pennock Idea Hub

Cam Hui

Cam Hui has been professionally involved in the financial markets since 1985 in a variety of roles, both as a quantitative equity portfolio manager and as a sell-side analyst. He graduated with a degree in Computer Science from the University of British Columbia in 1980 and obtained his CFA Charter in 1989.

Cross-Asset Strategist & Quantitative Analyst

Global Cyclical Recovery: Easy Come, Easy Go?

How Far Can Tariff Man Dent The Stock Market?

Pennock Idea Hub

We are creators of independent equity research. The Pennock Idea Hub team are veterans of the investment industry. Much of our team has spent their careers at Merrill Lynch, Deutsche Bank, RBC Capital Markets and Wood Gundy. We have taken every aspect of research back to the studs and returned to first principles. The Pennock Idea Hub marries the interests of the sell and buy side. 

We offer the best research for institutional investors by:

-Only publishing research from veteran analysts
-Eliminate the inherent conflicts of the traditional sell and buy side relationship
-Ensure our team is always accessible; collaboration with clients nurtures our collective success

Cross-Asset & Quantitative Research

Cross Asset Strategy

Multiple Countries / Cross Asset Strategy

Last week, we highlighted the rising bifurcation of U.S. and non-U.S. equity markets (see<a href="https://www.smartkarma.com/insights/a-stealth-decoupling-sneaking-up-on-portfolios" target="_blank" rel="noopener">A Stealth Decoupling Sneaking Up OnPortfolios</a>). Further factor analysis reveals a possible seismic shift in cross-asset and factor return patterns, beginning with a steepening yield curve that is signaling better economic growth expectations.Based on a factor based review of equity returns, we conclude that.<ul>
<li>Favour non-U.S. equity exposure over U.S.</li>
<li>Favour value over growth and avoid high-octane NASDAQ names</li>
<li>Favour financials over technology globally</li>
<li>Position for a cyclical rebound with exposure to semiconductors, industrials and U.S. homebuilding</li>
<li>While the macro backdrop appears favourable, it may be too early for exposure to EM, gold and inflation hedge industries like resource extraction</li>
</ul>Global institutions appear to be caught on the wrong side of these exposures. Should this seismic shift continue, expect a FOMO stampede of these trends, which should lead to better relative performance in the future.

Last week, we highlighted the rising bifurcation of U.S. and non-U.S. equity markets (seeA Stealth Decoupling Sneaking Up OnPortfolios). Further factor analysis reveals a possible seismic shift in cross-asset and factor return patterns, beginning with a steepening yield curve that is signaling better economic growth expectations.Based on a factor based review of equity returns, we conclude that.
Favour non-U.S. equity exposure over U.S.
Favour value over growth and avoid high-octane NASDAQ names
Favour financials over technology globally
Position for a cyclical rebound with exposure to semiconductors, industrials and U.S. homebuilding
While the macro backdrop appears favourable, it may be too early for exposure to EM, gold and inflation hedge industries like resource extraction
Global institutions appear to be caught on the wrong side of these exposures. Should this seismic shift continue, expect a FOMO stampede of these trends, which should lead to better relative performance in the future.

A Seismic Shift in Factor Returns