Rayliant Global Advisors

Join us in congratulating our own Dr. Jason Hsu who was hand-picked amongst a shortlist of esteemed CIOs featured in the Journal of Portfolio Management's September issue – a special "CIO Perspectives" edition of the publication.   Read Jason’s CIO Perspectives here: https://bit.ly/3Ubi4t7 Frank Fabozzi  | Cliff Asness | Eric Sorensen | Ian Toner    #Finance #Investment #PortfolioManagement 

Rayliant’s $RAYC is an active ETF providing investors with access to a quant managed portfolio comprised entirely of onshore China equities. For more information visit https://lnkd.in/gDF9egTP Disclosures: https://bit.ly/3b920lW

Great visit with Sumitomo Mitsui DS Asset Management Co., Ltd.'s CIO Mr. Naoto NAGAI in Southern California recently! From Future Proof Festival to investor meetings, we covered a lot of ground in just a few days (...and we managed to have some fun along the way)!!! Thank you for your partnership!

During a CFA Institute webinar, Frank Fabozzi and Jason Hsu dive into the nuances of timing factors in quantitative research. They discuss key challenges quants face when a factor stops performing: Has it been “arbed out,” or are we in an extended bubble? To watch the full conversation: https://bit.ly/4dMtFFC

Highlights from Perspectives Issue 106! (link in comments section below⬇️) Figure 1. Valuations of some chipmakers seem to reflect a rosy terminal state for stocks in the sector, with industry darling NVDA selling at almost 50x forward earnings and UK-based Arm Holdings priced at nearly 100x. Investors should always take note of chip stock’s market valuation multiples, such as P/E. Figure 2. Retail sales beat expectations. Results were even better looking at a metric that economists call “control-group sales,” which excludes food services, autos, gas stations, and building materials, viewed as a more stable barometer for consumer spending and more closely connected to the calculations of US GDP.   Figure 3. Industrial production in the US is still weak and below expectations. September’s negative surprise was driven by manufacturing output, accounting for nearly four-fifths of the nation’s overall production, which slid by 0.4% for the month, much worse than economists’ expectation of a 0.1% drop. Mining performed poorly, contracting by 0.6% month-over-month, while utilities grew by 0.7% on higher energy demand.

In April, Rayliant partnered with Sumitomo Mitsui DS Asset Management Co., Ltd. in launching an active #Japan Equity #ETF, $RAYJ. In a conversation with Jason Hsu, Mr. Takashi Saruta, Sumitomo's CEO says incorporating ETFs can provide a solid foundation for long-term growth. He encourages investors to embrace the long-term journey with Japanese stocks.

In a recent segment with RIA Channel's Julie Cooling, Jason Hsu explains the difficulty for fundamental managers to cover the breadth of companies within the #emergingmarkets universe. Rayliant's systematic approach leverages machine learning to analyze thousands of stocks quickly.

Highlights from Perspectives Issue 106! (link in comments section below⬇️) Figure 1: Heading into a contentious November election in the US, it’s worth thinking not just about how the Fed will interpret these numbers, but how they feel to households facing them on a day-to-day basis. To that end, data from the University of Michigan released at the end of last month showed most consumers continued to feel the pinch of high prices more viscerally than recent BLS reports might suggest. Especially for lower-income households, whose budgets have been most impacted, 2024 has been marked by a sharp rise in expectations for longer-term price increases. Figure 2: The US National Oceanic and Atmospheric Administration tracks dozens of billion-dollar natural disasters that have hit American cities over the last few decades and plots a worrying trend toward more frequent and more expensive events over the years. Florida got a taste of this dynamic last Wednesday, enduring another big storm, Hurricane Milton, which ripped through the state with 100-mph winds, tornados, and flooding. Figure 3: The ECB finds itself in a position worse than the Fed’s. Like Powell and company, the ECB has seen a nice fall in inflation since the 2022 high but worries that the ‘last mile’ to its 2% target will be bumpy. Even though headline inflation did go below the 2% level in September—its lowest reading since April 2021—core CPI has leveled off just under 3%, and services prices are hovering around a 4% year-over-year increase since late last year. That’s the same stickiness we worry about in US inflation data. 

Frank Fabozzi and Jason Hsu discuss the shift toward global macro issues and its impact on quant investment strategies. Can time series analysis help evaluate factor performance in various macro environments and the role of macro variables in factor construction and dynamic allocation? Results for emerging markets are promising. Please register for CFA Institute's webinar on October 16 at  PM ET for their full conversation: https://bit.ly/4dMtFFC