Lazard Insights

Over almost a decade, value investing has been out of favor globally. On the flip side, investors have piled into quality, growth, and low volatility stocks—driving the underperformance of value-oriented strategies and strong performance of momentum- and sentiment-oriented investment styles. While the timing of a resurgence of the value premium is difficult to forecast, we believe that when it returns, it will once again be an important tailwind to delivering strong returns for active investors. Jason Williams, Portfolio Manager/Analyst on Lazard’s Advantage team evaluates the historical merit of the value premium and identifies the potential catalysts for its comeback.

Featured Speaker

Jason Williams, CFA

Senior Vice President, Portfolio Manager/Analyst

Jason Williams is a Portfolio Manager/Analyst on Lazard's Equity Advantage team. He began working in the investment field in 2001. Prior to joining Lazard in 2008, Jason was a Quantitative Portfolio Manager in the Pan European Active Equities group with State Street Global Advisors (SSgA), focusing on model development and performance evaluation. Earlier at SSgA, he was a Portfolio Analyst within Active European Operations. He has an MA in Finance and Investment from the University of Exeter and a BSc Honours in Mathematics from Coventry University. Jason is a member of the CFA Institute and the UK Society of Investment Professionals (UKSIP).

In late 2015, investors’ attention zeroed-in on US high yield markets as sentiment soured in connection with price drops in oil and commodities. However, as we look beyond the news headlines and high yield market performance, we see a different picture for investors. In particular, we believe the higher quality spectrum within US high yield bonds represents a strong opportunity. Jeffrey Clarke, Research Analyst on Lazard’s US High Yield team evaluates the basic risks of seeking yield, the normalization of US interest rates, and the current conditions for US high yield.

Featured Speaker

Jeffrey J. Clarke, CFA

Senior Vice President, Portfolio Manager/Analyst

Jeffrey Clarke is a Portfolio Manager/Analyst on the US Fixed Income team. Jeff primarily focuses on investment opportunities in the US Taxable markets, specializing in US Corporate High Yield credits. He began working in the investment field in 1999. Prior to joining Lazard in 2002, Jeffrey was a High Yield Research Analyst and Funds Administrator with OFFITBANK, and was also previously with the Bank of New York. He has an MBA from New York University and a BA in Business Administration from Hofstra University. Jeff is a CFA® charterholder as well as a member of the CFA Institute and the New York Society of Security Analysts (NYSSA).

Following a volatile year for a number of asset classes driven in part by monetary policy expectations as well as broad-based equity corrections during the third quarter, we believe key themes have emerged to draw investors’ attention. While there are always many factors that drive the economy and markets, in 2016, we believe the most critical topics will be global monetary policy, oil prices, China, and geopolitical uncertainty. Ron Temple, Co-Head of Lazard’s Multi Asset and Head of the US Equity team, will discuss the implications of each of these topics and provide his global outlook for 2016.

Featured Speaker

Ronald Temple, CFA

Managing Director, Co-Head of Multi-Asset and Head of US Equity

Ronald Temple is a Managing Director and Co-Head of Multi-Asset and Head of US Equity, responsible for oversight of the firm's multi-asset and US equity strategies as well as several global equity strategies. He is also a Portfolio Manager/Analyst on various US and global equity teams. Since joining Lazard in 2001, Ron has developed a reputation as an authority on the global financial crisis and the secular changes under way in the global economy. Beyond his day-to-day responsibilities, Ron engages extensively with a wide range of Lazard's investment professionals across the equity and debt arenas to leverage the firm's insight broadly.

Ron's unique perspectives in part arise from his broad range of previous experiences in financial services. Prior to joining Lazard, Ron was a Director and Buy-Side Equity Analyst at Deutsche Bank AG. In a previous role at Deutsche Bank, he oversaw the implementation of merger related synergies on behalf of Deutsche Bank's CEO of the Americas after Deutsche acquired Bankers Trust. During the Asian debt crisis, Ron served as business manager for Deutsche Bank's CEO and Deputy CEO of Asia/Pacific in Singapore, a position in which he supervised the Investment Banking Division and executed on strategic business changes for the Group. He also held a previous role in a global business manager function for Deutsche Bank's foreign exchange business. Ron has had extensive experience developing and enhancing risk management processes at Deutsche Bank, Bank of America NT&SA, and Fleet Financial. Ron began his career trading cash and derivatives in the interest rate and foreign exchange markets at Fleet Financial Group. Ron earned his Master in Public Policy from Harvard University and his Bachelor of Arts in Economics and Public Policy Studies magna cum laude from Duke University. He is a member of the Council on Foreign Relations, the Economic Club of New York, Duke University’s Graduate School Board of Visitors and the New York Society of Security Analysts (NYSSA). He also served as a trustee of the Link Community School in Newark, New Jersey, from 2006-2014, as a member of the Trinity Board of Visitors at Duke University from 2006-2012 and a member of the Financial Accounting Standards Advisory Council from 2013 to 2015.

Alternative investments can be an important component of investment portfolios as these can be used to increase diversification and may improve risk-adjusted returns. However, many investors associate alternative investments with the complexity of hedge funds. Importantly, the emergence of liquid alternative vehicles has generated the opportunity to access the potential benefits of hedge fund strategies, with simplified access through daily liquidity and greater transparency. Matthew Glaser, Portfolio Manager/Analyst on Lazard’s Master Alternatives team, will discuss the benefits of liquid alternatives, their role in asset allocation, and the drivers of potential future demand for these investments.

Featured Speaker

Matthew Glaser

Managing Director, Portfolio Manager/Analyst

Matthew Glaser is a Portfolio Manager/Analyst on Lazard’s Master Alternatives team. Prior to joining Lazard in 2014, Matthew served as Chief of Investment Strategies and Executive Managing Director at Turner Investments. At Turner, Matt was a member of the Executive Management Group, Enterprise Risk Committee, and Alternative Strategies Oversight Group, and he had oversight responsibility for the Turner Spectrum and Market Neutral Funds. Prior to joining Turner in 2007, Matthew worked at Susquehanna International Group and was a Managing Director at JP Morgan, and Robertson Stephens. He began working in the investment field in 1995. Matthew has an MBA in Finance from Columbia University and a BA in History from Wesleyan University.

The sharp decline in China’s onshore market during the summer of 2015 prompted some aggressive intervention and support measures by the Chinese government. The subsequent devaluation of the renminbi resulted in panic selling in China and drew even greater attention from global investors to China’s markets. While these are meaningful events, we believe it is important for investors to look beyond the short term news flow to understand the structural implications of onshore Chinese equities for global portfolios. Manish Singhai, Portfolio Manager/Analyst and lead of Lazard’s Asian Equity team, provides an overview of China’s onshore market and evaluates the potential opportunity set as it continues to integrate into global capital markets.

Featured Speaker

Manish Singhai, CFA

Managing Director, Portfolio Manager/Analyst

Manish Singhai is a Portfolio Manager/Analyst and leads the Asian Equity team in Singapore. He works in conjunction with Lazard Asset Management's global and emerging markets analysts around the world. Manish began working in the investment field in 1993. Prior to joining Lazard in 2012 he was the CIO of Asian Equities at Aviva Investors. Prior to joining Aviva, Manish established his own hedge fund, Arjava Capital. Previously, he worked at AllianceBernstein in Singapore for 10 years, five of which were as CIO for Asia ex-Japan equities. Manish has an MBA from the Indian Institute of Management in Calcutta, and a Bachelor of Technology from the Indian Institute of Technology in Delhi.

The favorable historical outperformance of small caps over large caps is a well-established phenomenon of the capital markets. Globally, the small-cap opportunity set is vast and at the same time is thinly covered by analysts. As such, the asset class remains a fertile ground for active stock pickers and investing in small caps calls upon a differentiated and specific skill set relative to large caps. Edward Rosenfeld, Portfolio Manager/Analyst on Lazard’s European, International, and Global Small Cap Equity teams, discusses the small-cap effect and the significance of active management within the global small-cap universe.

Featured Speaker

Edward Rosenfeld

Managing Director, Portfolio Manager/Analyst

Edward Rosenfeld is a Portfolio Manager/Analyst on the Global, International, and European Small Cap Equity teams. He began working in the investment industry in 1996. Prior to joining Lazard in 2001, Edward was an analyst with J.P. Morgan. He has an MBA from the University of Chicago and a BA from Columbia College.

Over the past ten years, there has been a significant rise in US health care spending, which is currently on pace to reach nearly 20% of GDP by 2023. We believe the recent acceleration of scientific advances and innovation may lower health care costs in the future. Investors recognize these advances could produce big winners, as well as many losers, and are increasingly paying for potential long-term optionality that exists with many biopharmaceutical companies. Rhett Brown, Managing Director and Research Analyst covering the health care sector, provides a detailed overview of health care innovation and how these changes may affect the industry.

Featured Speaker

Rhett E. Brown, CFA

Managing Director, Research Analyst

Rhett Brown is a Managing Director and Research Analyst covering the health care sector. He began working in the investment field in 1996. Prior to joining Lazard in 2005, he was a research analyst covering health care companies at Deutsche Bank Securities and Volpe Brown Whelan & Company. Before entering the investment business, Rhett held various functional roles including basic research, marketing, and sales within the biopharmaceutical industry, working for Amersham Life Science (now GE Healthcare), the Applied Biosystems Division of Perkin Elmer (now owned by Thermo Fisher Scientific), and Immulogic Pharmaceutical Corporation. Rhett has an MBA (Hons) in Finance from the Wharton School, University of Pennsylvania and a BS (Hons) in Biological Sciences from Stanford University.

The strength of the US dollar relative to other currencies over the past year has heightened investor awareness of currency effects. Currency fluctuations are an important consideration for global investors in both fixed income and equity investments and can have a profound effect on performance. Yvette Klevan, Portfolio Manager/Analyst on Lazard’s Global Fixed Income team, provides an overview of currency valuation drivers and discusses the effect of foreign exchange on bonds. Robert Failla, Client Portfolio Manager on Lazard’s Global and International Equity platforms, addresses the important considerations for understanding the link of currency fluctuations and equity markets.

Featured Speakers

Yvette Klevan

Managing Director, Portfolio Manager/Analyst

Yvette Klevan is a Portfolio Manager/Analyst on the Global Fixed Income team. She began working in the investment field in 1982. Prior to joining Lazard in 2002, Yvette was a Senior Portfolio Manager with Offitbank. Previously she worked at Bank of America, Chase Manhattan Bank and Aramco Services Company. Yvette has an MBA in Finance and Management Information Systems from the University of Houston and a BBA in Mechanical Engineering Route to Business from the University of Texas.

Robert A. Failla, CFADirector, Client Portfolio ManagerRobert Failla is a Director and Client Portfolio Manager on the International and Global Equity platforms. As well, he is a member of the Global, International, and European Small Cap Equity teams. He began working in the investment field in 1993. Prior to joining Lazard in 2003, Robert was a Portfolio Manager with AllianceBernstein. He has an MBA from NYU's Stern School of Business and a BA (Hons) from Harvard. Robert is currently on the Board of Trustees at Delbarton School in Morristown, NJ.

Active share emerged as a new tool to assess an active manager’s process. Erianna Khusainova, Portfolio Analyst on Lazard’s Multi Asset team, discusses the usefulness and limitations of active share and how it can be employed to evaluate portfolios. Academic research revealed that high active share portfolios are linked to outperformance. Low active share can help identify “closet indexers,” that is, managers posing as active but in reality closely resemble an index.

Featured Speaker

Erianna Khusainova, CFA, CAIA

Senior Vice President, Portfolio Analyst

Erianna Khusainova is a Senior Vice President and Portfolio Analyst on the Lazard Multi-Asset investment team, focusing on investment strategy and macroeconomic research. Since joining Lazard, Erianna built and led the global Marketing Data group, which serves as a centralized resource for quantitative portfolio and market analytics to support the firm's global marketing and sales efforts. She began working in the investment field in 2006. Prior to joining Lazard in 2006, Erianna was a Senior Staff Accountant at The King's College, responsible for accounting and financial analysis. Erianna has an MBA in Finance from the Baruch College, Zicklin School of Business and a BBA in Finance from Tashkent Polytechnical University in Uzbekistan. She is a member of the NYSSA and the CFA Institute and is a native speaker of Russian.

In 2012, the Japanese economy was at a crossroads. It could either continue down the path of low growth and deflation or make reforms to reclaim its place on the world stage. Two years later, the Topix Index has almost doubled and Japanese companies have become more profitable and, thanks to Abenomics, are acting in the interest of shareholders. Timothy Griffen, Portfolio Manager/Analyst on Lazard’s Japanese Equity team, discusses the current economic landscape in Japan and the progress of Abenomics.

Featured Speaker

Timothy S. Griffen

Managing Director, Portfolio Manager/Analyst

Timothy S. Griffen is a Managing Director and a Portfolio Manager/Analyst at Lazard Japan Asset Management K.K. and leads the Japanese Equity team in Tokyo. He began working in the investment field in 1986. Prior to joining Lazard in 2005, Tim held several positions at Deutsche Trust Bank and Scudder Investments Japan, most recently as Chief Investment Officer. Previously, he was a Partner and Regional Specialist at Draycott Partners. He has a BA in Business/East Asian Studies from Wittenberg University, and received an Advance Japanese Language Degree from Waseda University. He also has an MBA in International Finance from the University of South Carolina. Tim speaks fluent Japanese.