Rob Arnott Shop Says Rout Has Forced Rethink of Bearish Bent
- Research Affiliates favors small caps, value after sell-off
- Sees small positive returns for U.S. large caps over decade
This article is for subscribers only.
After years warning against crowded positioning in stocks, looming bubbles and the growing likelihood that U.S. equities would return nothing whatsoever, Research Affiliates is making its way back to risk.
Rob Arnott’s shop, a smart-beta pioneer and sub-adviser to money managers including Pacific Investment Management Co., re-calibrated its forecasts for future performance across assets after the historic virus-induced crash reshaped the investing landscape. The firm is turning more optimistic, upping exposure to small cap U.S. equities and leaning even further into value -- by the most their models will allow.