Barrow Hanley Global Investors

Last week, Barrow Hanley joined top portfolio managers in NYC for “Stepping Outside the Echo Chamber,” a special event highlighting a diverse mix of perspectives, meaningful discussions, and valuable insights for investors navigating uncertain waters in the global market. In a conversation about risk and volatility, Barrow Hanley Portfolio Manager Sherry Zhang discussed the narrowing of returns in emerging markets, as well as growing dispersions, which could spell investor opportunity. Our Head of US Equities, Mark Giambrone shared that investor anxiety is heightened by the significant highs and lows in a highly concentrated market. Focusing on opportunities over a broader time frame and sticking to core principles is key to investing success, he said. “I don’t view it as a broken structure, it’s a different structure,” he added. Learn more about Barrow Hanley’s investment approach: https://lnkd.in/dQci7mm

We are honored to be named the Best Global Value Investment Partner US 2024 by CFI.co - Capital Finance International! This award is a testament to our unwavering commitment to value investing and delivering exceptional results for our clients. In a recent article, CEO Cory Martin shares insights from his 26-year journey at Barrow Hanley, guiding our transformation into a global manager. Under his leadership, we’ve expanded our equity and fixed-income strategies, growing our client base beyond North America. Our value investing philosophy, consistent for over 45 years, focuses on identifying fundamentally strong businesses temporarily disconnected from their intrinsic value. This approach also applies to our fixed-income strategies, built on solid fundamentals. As we navigate today’s volatile market environment, risk management remains a top priority. Our disciplined approach ensures that we are well-prepared for various market conditions, while our focus on sustainable investing positions us for the future. Thank you to our clients and partners for your continued trust and support. We look forward to continuing our journey together. Learn more in CFI’s article Barrow Hanley: Insights from a Global Value Investing Leader. Disclosure: Awarded May 2, 2024. Barrow Hanley did not pay cash or non-cash compensation, directly nor indirectly, in connection with this recognition.

The Federal Reserve topped headlines in September after officials issued rate cuts at last, slashing interest rates by 50 basis points. While some were surprised by the outsized cuts, the Fed signaled confidence in the economy and shifted its focus toward “achieving maximum employment” to outpace the probability of a recession.   Billions poured into money market funds as investors took advantage of risk free returns topping 5% or more — the highest figures since November last year. Yet, outside of short-term declines, rates outside of the front end of the curve have trended higher: High Yield and Loans alike experienced a risk-on-month with CCC-rated assets leading returns, while CLO AAA amortizations drove funding costs lower.   As investors consider where to allocate capital across asset classes next, we’re weighing how other macro factors will come into play.   In Barrow Hanley Credit Partners’ latest monthly update, we examine how current debt-to-GDP levels could influence the economy — creating added pressure as investors look to develop the right strategy and balance for the highest return in the months ahead. Read now. https://lnkd.in/gScMdpzi

In sustainable investing, corporate engagement is a driving force for change. But it’s no small feat to bring companies to the table and persuade them to improve disclosure.    This afternoon, Barrow Hanley Portfolio Managing Director, Responsible Investing Lead Ross M. Campbell joins a special panel with the Goldman Sachs Sustainability Forum for an important conversation on corporate engagement performance.    The group will examine the current sustainable investing landscape, capture the pulse of asset owners, and share successful engagement strategies to inspire open dialogue and improve education and understanding.

The month of August began on a volatile note, fueled by the unwinding of the Yen carry trade and hawkish policies stemming from the Bank of Japan. A global sell-off once again stoked recession fears here in the US, particularly for tech stocks with exposure to the Yen carry trade, which led the S&P to decline 7.5% within the first week. Meanwhile, the Yen continued its ascent. Despite the dizzying start, the market managed to recover its losses and investors edged back into risk to forge a rebound by the end of the month. Will the momentum last? In Barrow Hanley Credit Partners’ latest monthly update, we share the surprising upsides that carried risk assets through the volatility and weigh the impact of forecasted Fed rate cuts. Read now. https://lnkd.in/gvSb6bDH

At Barrow Hanley Global Investors, we believe success starts with cultivating a team that can offer diverse perspectives and inspire intellectual dialogue to deliver thoughtful investment decisions. We’re committed to steering our collective wealth of experience and institutional knowledge for the benefit of our clients. With these values in mind, we are pleased to introduce Kathrine Husvaeg as Managing Director, Head of Business for the United Kingdom and EMEA, representing an exciting new chapter at Barrow Hanley.    Kathrine Husvaeg joins Barrow Hanley from Russell Investments in London, where she most recently served as Co-head of Equity Portfolio Management. She will play a critical role in leading expansion efforts across the UK and EMEA, showcasing our comprehensive investment capabilities and advancing our presence within these regions.     We can’t wait to share more about Kathrine in the near future. Until then, please join us in offering Kathrine a warm welcome to the Barrow Hanley team. Read the announcement. https://lnkd.in/gh46qVSW

Confused about Collateralized Loan Obligations? The name alone is enough to detract some investors from including CLOs in their portfolios, but there’s good reason to take a closer look at this investment alternative.   This underutilized asset class isn’t as complex as it seems. CLOs provide investors with an efficient vehicle to access the bank loan market — with built-in risk protections that benefit all stakeholders.   CLOs use debt and equity funds to purchase a diverse loan portfolio comprised of roughly 200 distinct, below-investment-grade corporate issuers’ loans.   Because CLOs include structural protections, such as the ability to maintain a long-term investment horizon even in times of stress, they tend to be more defensive than market opinion. In fact, CLOs issued during later stages of economic cycles often provide above-average returns and consistently pay high cash dividends — attracting a wider investor base over the years.     But we’re just scratching the surface. For an in-depth look at CLOs and how investors are leveraging this asset class to achieve diversified portfolio opportunities, download Barrow Hanley’s latest primer: “Unlocking Value: Demystifying CLOs.” https://bit.ly/4dPtpGq

Sustained strength in small-cap equities drove positive market returns across asset classes in July, but small stocks weren’t the only area providing bright spots this month. The big gains funneled new money to benefit High-Yield and Loans, too. Will the momentum continue?   It remains to be seen. Despite positive trends in the Russell 2000, we've observed companies adopting a more risk-averse approach as they navigate uncertainty surrounding potential market volatility and the impending rate cuts from the Fed.   In Barrow Hanley Credit Partners’ latest monthly update, we discuss the air of cautious optimism and share key market insights across the High Yield, Loan, and Private Credit landscape. Read the report - https://bit.ly/3YJsras

The economy held firm during June, providing a positive sheen across most asset classes as labor and inflation numbers returned with only slight deterioration and the S&P continued to gain. Read more about June’s soft economic landing in Barrow Hanley Credit Partners’ latest monthly update, where we provide dynamic market insights across the High Yield, Loan, and CLO landscape. https://lnkd.in/gNybRTDU

Barrow Hanley is thrilled to partner with Senior Advisor Allison Binns, PhD., for an ESG consulting engagement. Allison’s impressive background will be a tremendous asset to us as we seek to understand and address recent regulatory changes related to ESG investing in the EU.  In addition to her current role with Danu Venture Group, Allison also serves as Co-Chair of the Sustainability Advisory Board for Persefoni and as an Advisory Council Member for Novata. She has previously held positions in executive roles related to ESG and Sustainability with Angelo Gordon, Morgan Stanley, and Chevron. Welcome, Allison! We are thrilled with the opportunity to leverage your knowledge and experience and appreciate your contributions towards our ESG investing efforts!