As investors look to adapt portfolios to a more complex and uneven equity market, host John Bryson is joined by Josh to discuss how global long/short equity strategies can support portfolios in volatile times.

Josh shares his perspective on why volatility and dispersion can create attractive opportunities for active investors, and how long/short strategies may help manage downside risk while seeking market like returns. The conversation explores the role of active security selection and its suitability to the current environment as investors adapt to shifting market conditions. Here are some highlights from the conversation:

1 What role can global long/short strategies play in a portfolio?

Josh: We think about a global long/short strategy as a return driver. We’re trying to generate market-like returns, or better. The benchmark is the MSCI World Index, and we're targeting returns of roughly 8%-12% over a full cycle. Over time, the strategy should generate returns but behave differently. And in years when the rest of a portfolio struggles, it should perform well.

2 Why does this strategy suit the current market environment?

Josh: We’re in a longer-term inflation cycle that began during the pandemic, driven by government deficits and spending. From 2023 through 2025, inflation was settling, and we focused more on taking long positions. Coming into this year, valuations became richer, and short opportunities increased. We’re more aggressive on the short side now, particularly with emerging credit risks. On the long side, we like some tech companies tied to data center buildouts, memory companies, and metals and mining.