V-Square Quantitative Management LLC

Hear Mamadou-Abou Sarr, CIFD and Habib Moudachirou, FRM, CIFD, NACD.DC share their vision for V-Square ! Join us in this journey! V-Square Quantitative Management LLC : This is Sustainable Investing Reimagined #vsquare https://lnkd.in/dnAs4efZ

Diversify or Concentrate? The 2024 Mega-Cap Dilemma #chartoftheweek The trend of mega-cap companies dominating US equity markets has strengthened over the past decade. The nomenclature for these leading companies has evolved to now include the term, the Magnificent Seven, highlighting the outsized influence of Nvidia, Apple, Amazon, Microsoft, Google, Meta, and Tesla. In 2024, these seven companies have increased their share of the S&P 500 from 27.5% to 32.1% (measured by free-float market capitalization). This growing concentration poses challenges for passive investors, who may face heightened exposure to several dominant names. At the same time, diversifying away from these stocks could lead to underperformance. How do you approach the balance between diversification and concentration risks? The trend of mega-cap companies dominating US equity markets has strengthened over the past decade. The nomenclature for these leading companies has evolved to now include the term, the Magnificent Seven, highlighting the outsized influence of Nvidia, Apple, Amazon, Microsoft, Google, Meta, and Tesla. In 2024, these seven companies have increased their share of the S&P 500 from 27.5% to 32.1% (measured by free-float market capitalization). This growing concentration poses challenges for passive investors, who may face heightened exposure to several dominant names. At the same time, diversifying away from these stocks could lead to underperformance. How do you approach the balance between diversification and concentration risks? Disclaimer: vsqm.com/disclaimer?u=6 The chart above shows the percentage of the S&P 500 by market capitalization that is attributable to the Magnificent Seven stocks –NVDA, AAPL, AMZN, MSFT, GOOG, META, and TSLA. This is calculated by taking the sum of each of these individual companies’ weights in the S&P 500 Index which is determined by free float market capitalization. This chart extends over the period beginning 12/31/2018 through 11/18/2024. Data sources: Bloomberg & S&P Global. Chart source: V-Square Quantitative Management. It is not possible to invest directly in an index. Past performance does not guarantee future performance.

We are thrilled to welcome Abhay Munot, CFA?to the V-Square team as a Multi-Asset Portfolio Manager. Abhay brings a 20+ year experience having contributed to both large and boutique firms managing multi-billion-dollar portfolios. His expertise spans systematic and fundamental stock-picking strategies across various geographies (US, EAFE, and EM), market capitalizations (Large, Mid, and Small Cap), and investment styles (Value, Growth, and Core). Before joining V-Square, Abhay held senior quantitative research roles at Chicago Equity Partners, American Century, and most recently, Kabouter Management where he worked on factor research, portfolio construction, performance attribution, and portfolio analytics. Prior to transitioning into the financial sector, Abhay spent over a decade as an IT consultant, primarily with Capgemini, specializing in software development. Abhay is a CFA? charter holder and an active member of the Chicago Quantitative Alliance (CQA). He holds a Master’s degree in Computer Information Science from Cleveland State University and a Bachelor of Engineering in Production (Industrial) Engineering from Veermata Jijabai Technological Institute (VJTI), Mumbai. More about V-Square: www.vsqm.com Careers: https://lnkd.in/g8EXqpTW

Let’s keep the momentum? Chart of the week: Thus far in 2024… equity markets and the momentum factor have shown standout performance. The momentum factor refers to the tendency for stocks that have recently performed well to continue their upward trend in the near term and vice versa, for poorly performing stocks. As seen in the chart below, the S&P 500 and Bloomberg's US Pure Momentum Portfolio indexes have trended upwards in 2024. While some portfolios have benefitted from the momentum factor, other portfolios have not fared so well. With momentum reaching its highest level in more than a decade, it important to note that historically momentum has been prone to sharp reversals. It’s a good moment to assess your portfolio’s exposure to the momentum factor – pun intended. What’s your take? How do you consider factor exposures in your portfolio? #chartoftheweek #vsquare Disclaimer: https://lnkd.in/g2Ahvz44 The chart above shows 2024 year-to-date percent change, through 11/13/2024, of the S&P 500 Total Return Index and of the Bloomberg US Pure Momentum Portfolio Total Return Index.?Data sources: Bloomberg & S&P Global. Chart source: V-Square Quantitative Management. It is not possible to invest directly in an index. Past performance does not guarantee future performance.

We are thrilled to welcome Charlie Kolacki, CFA to the V-Square team as our Client Portfolio Manager. Charlie brings a deep commitment to client engagement and a passion for innovative investment strategies. In his role, Charlie collaborates with clients to support their investment goals and actively contributes to V-Square's research and strategy development. Charlie brings years of experience in investment and the asset management industry from past roles at First Trust Capital Management and Plante Moran, where he focused on analyzing and investing with fund managers. This experience gives Charlie invaluable insights into clients' priorities, enabling him to address their needs effectively. He received a BBA in Finance from Michigan State University and is a CFA? charter holder. More about V-Square: www.vsqm.com Careers: https://lnkd.in/g8EXqpTW

Go small and go cheap? Looking back at the past seven U.S. elections, 1996 to 2020, U.S. equity markets have often performed well in the 12 months post-election. U.S. small caps and U.S. small cap value stocks, in particular, have shown a notable trend of displaying higher returns than U.S. large cap stocks in these post-election periods. Of course, while historical patterns are informative, they’re not predictive. Considering the broader macroeconomic picture today, several factors could weigh against U.S. small caps and U.S. small cap value stocks, including a seemingly sticky elevated rate environment. While only time will tell, we think this historical trend highlights how tactical over- and under-weights can influence long-term portfolio results. What’s your view??

Did you say Election Boost? Over the past two decades, the S&P 500 has navigated through various presidential terms, facing both economic crises and periods of growth. This chart highlights the S&P 500’s annual returns, showing the impact (or lack thereof) of political shifts. From Bush to Biden, it seems the market's response often depends more on macroeconomic trends than the party in office. Historically, the most significant influences on equity market returns have been shifts in the business cycle and key macroeconomic indicators such as gross domestic product, the nonfarm payroll report, the consumer price index, and the consumer confidence index. What’s your take? Do elections shape the market, or is it all about timing? #finance #SP500 #electionimpact #economy #investing #markettrends Source: V-Square Quantitative Management LLC, S&P Disclaimer: V-Square Quantitative Management LLC

In the last four years, Marguerite Casey Foundation (MCF) has made enormous strides to bring the full weight of our endowment into lockstep with our racial and economic justice values. Currently, we’ve reached 97% mission-aligned investments, and we get a lot of questions about how we’ve made this change so quickly. To help spread awareness about the how and why of values-aligned investing, my esteemed colleague Daniel Gould, CFA, CAIA, MCF’s Vice President Of Investments & Operations traveled to the Philanthropy Northwest conference in Montana last week to share the story of MCF’s journey to align our endowment with our mission. A packed room heard about the work Dan has led, alongside our board of directors and trusted partners, to create robust, values-aligned screening for our investments and the racial and gender diversity and inclusion requirements for the companies overseeing them. MCF was honored to present our story alongside two highly trusted and valued asset managers, Mamadou-Abou Sarr, CIFD, founder of V-Square Quantitative Management LLC, and Daryn Dodson, founder of Illumen Capital, who shared their approaches in the public and private equity markets and spoke to the experience of seeking funding in the current landscape. For my colleagues in philanthropy, if you are looking for actionable ideas on how to shift your institutional practices to align your endowment with your mission, I have good news: It doesn’t have to be hard, especially if you have the right partners.

"True innovation happens when we shift paradigms and translate those shifts into solutions for emerging needs. When you are thinking about things that are not yet there."says Mamadou-Abou Sarr, CIFD NYSE ICE #innovation #assetmanagement

"If you don't have confidence, you'll always find a way not to win." The words of nine-time Olympic gold-medalist Carl Lewis resonated with businesses and entrepreneurs opening their doors in the months leading into March 2020. V-Square Quantitative Management LLC was one of those, dealing with an unanticipated global pandemic and an unexpected future. Four years later, and after achieving significant growth, V-Square co-Founder & President Mamadou-Abou Sarr, CIFD goes Inside the NYSE ICE House to reflect on the uncertainty of opening the firm in April 2020, our path to success, and the evolving asset management industry. Listen on Spotify: https://lnkd.in/gsKkkmeX Listen on YouTube: https://lnkd.in/gK6H2HKa Lance Glinn, M.A. ICE V-Square Quantitative Management LLC #leadership #assetmanagement https://lnkd.in/gK6H2HKa