Equity Strategy
ASR’s five-factor framework comprised of macro, earnings, valuation, liquidity and sentiment is used to assess global equity markets and provide recommendations by region and sector.
Within our Investment Strategy product, we also conduct Quantitative Strategy, which includes factor and style analysis, tax analysis and proprietary dividend models.
What We Offer
Research
Equity Strategy Insight
Our Insight notes provide a concise analysis of topical events relating to the equity market. We also contextualise key events and data in respect of our investment views and market calls.
Equity Strategy Weekly
In-depth analysis of Equity Markets. Including:
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coverage of Market views, Regional calls and Sector Strategy.
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We run a Global Sector Scorecard ranking 23 Global Sectors
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For the longer-term, we also cover Structural Investment Themes (such as a pick up in Capex and higher Defence spending).
Quarterly Global Equity Strategy
Overview of ASR Regional and Sector Recommendations. We review and update our Regions, Sectors and Structural Investment Themes. We also drill down to provide Stock Screens for key investment ideas.
Equity Factor Chartbook
Monthly review of key equity factor developments, and a range of charts that covers both the fundamental and the technical characteristics of equity factors.
Data
Equity Market Characteristics
Range of equity market characteristics such as typical and average stock valuations. Concentration measures such as Pairwise Correlations, PCA Absorption Ratios. Risk Appetite and Market Risk Indicators.
Global House Price Index
An index which provides the most timely estimate of house prices compared to other aggregate measures like the Dallas Fed and OECD.
Equity Factors
We can provide information on the performance, fundamental characteristics and constituents of our range of factors.
Earnings Season Summary
Measures that summarise the results season, both for revenues and for earnings.
Services
Absolute Connect Webinars
At least once a month, our weekly Absolute Connect Webinars will have an Equity Strategy focus. Previously, this has included the impact of bond yields on Equities, potential for a structural shift in RoE in Japan and the likelihood of shift to higher Global capex.
Conferences and Forums
We regularly present at both client and society events, giving an independent insight into overall Equity markets, Regional & Sector views and specific Investment Themes.
Bespoke Projects and Investment Solutions
We conduct bespoke analysis of equity markets and can provide portfolio construction analysis.
Research Coverage
Equity Strategy Update
Review of US Q4 Earnings Results
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Earnings growth and beat driven by widening margins of Magnificent 7
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Muted price reaction to beats especially in Tech as revisions
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High Cashflows might trigger more investment as buybacks unattractive
Narrow profits growth but cashflows remain strong
Equity Strategy: Insight
Japan: Party Like It's 1989
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Japanese Equities have been driven higher by
strong earnings on the back of a weaker JPY. -
Going forward, the investment case may shift to looking at unhedged returns and domestic sectors. We stay overweight Japan and the US.
Japan: Party like it's 1989
Our Team
Nick Nelson
Head of Equity Strategy
Nick spent 17 years at UBS Investment Bank, most recently as Managing Director, Head of European Equity Strategy. He ranked 2nd in the individual category in European Equity Strategy for Institutional Investor in 2019 and he and the team have been ranked highly over the years in Institutional Investor and prior to that, Extel surveys. From 2012-2014 Nick was UBS Head of Global Equity Strategy and managed the Global Emerging Market Strategy team. He was also a member of the Equities panel for UBS Wealth Management’s CIO Asset Allocation. Nick began his career in 1994 with SG Warburg (latterly UBS) as a member of the Institutional Investor number 1 ranked Global Asset Allocation team. After a period at Credit Suisse First Boston, initially as a member of the top-ranked Global Equity Strategy team and then as the Head of European Equity Strategy, Nick re-joined UBS in 2005 and was promoted to Managing Director in 2007. He regularly contributes to media, such as Financial Times Op Ed, CNBC, Bloomberg TV, Wall Street Journal, and cross-asset media Roundtables.
Charles Cara
Head of Quant Strategy
Charles Cara has been at Absolute Strategy Research since 2008 where he takes a stock analyst’s approach to equity factors by looking at their fundamental characteristics to assess their risks and rewards. He has built a range of Equity focused market indicators and regularly writes on company fundamentals including results seasons. Prior to ASR, Charles was a Senior Director, European Strategist at Merrill Lynch covering European Equities. He spent 10 years worked in the research department at Dresdner Kleinwort Wasserstein first as a stock analyst before managing the firm’s stock fundamentals database. During this period his research focused on accounting issues and the aggregate fundamentals of the market. Prior to joining DrKW, Charles was part of Morgan Stanley’s top ranked Paper & Packaging research team. He has contributed to CNBC and presented to the London Quant Group on Equity Risk Premia.