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      • FOMC Update: What, Me Worry?

        17 June 2020   |  

        The Federal Reserve concluded its June meeting, and the results were more dovish than anticipated as 10-year US Treasury yields retreated toward their all-time lows. That the Fed could even appear more dovish after its recent historic liquidity interventions may seem surprising, especially since some of those polices seem to be working (or at least seem not to be doing major near-term harm). Equity markets have erased most corona crisis losses, the latest employment data are shockingly positive and consumers are rushing back to stores given the opportunity. Financial markets are stable, and valuations are rising. The real economy is mending. Everything is looking up! So why is the Fed so glum?

      • Tracking the Economy Out of Lockdown

        26 May 2020   |  

        Memorial Day marks the unofficial start of summer and a key moment for the US in its journey through the COVID-19 pandemic: All 50 states have begun—to varying degrees—easing COVID-19 related restrictions.

        As restrictions on movement ease, we will start to get a handle on the answer to one very important question: What shape will the US economic recovery take? 

      • About That Tech Rally …

        22 May 2020   |  

        As markets have bounced off what has proven at least a near-term bottom on March 23, many have commented on narrowing breadth—i.e., market leadership among a decreasing number of stocks. Specifically, many noted the bounce was largely driven by the big tech stocks—particularly those commonly known as the FANG stocks (Facebook, Amazon, Netflix and Google, with some adding Microsoft and Apple and rendering the acronym unpronounceable). It’s worth noting that not all of those names are classified as technology companies from a GICS sector perspective: Facebook, Netflix and Google (Alphabet) all fall in the communication services sector, while Amazon is considered discretionary and Microsoft is the only “true” technology company.

        Nevertheless, sector returns—in the US and overseas—tell a slightly different story from a tech(/communication services/discretionary)-led bounce.

      • A New Era of Alphabet Soup?

        19 May 2020   |  

        Unprecedented times beget unprecedented measures—and with the global financial crisis still visible in our rear-view mirrors, global central banks have in some ways responded to fresh crisis with substantially similar tools. Meaning they’ve lowered rates (to the extent they can, given relatively low rates to start with) and they’ve offered various lending facilities to ensure markets maintain sufficient liquidity levels.

      • Employment Limbo for Millions

        11 May 2020   |  

        Another day, another grim US economic milestone amid the COVID-19 pandemic. On May 8, the US Labor Department released its April Employment Situation report. The magnitude of the numbers was momentous—nonfarm payroll employment fell by 20.5 million people and the unemployment rate jumped to 14.7%, from 4.4% in March.

      • Emerging Markets Case Study: India Amid COVID-19

        01 May 2020   |  

        Featured Author: Gurpreet Pal
        Gurpreet Pal is an analyst on the Artisan Partners Sustainable Emerging Markets Team.

        As the COVID-19 pandemic evolves, emerging markets are set to take center stage. The US, Italy and other developed markets appear to be flattening the curve and starting to reopen their economies. In comparison, many emerging markets appear to be in much earlier phases of an outbreak. Within EM, India is an especially intriguing country to watch as it seems to be managing the pandemic better than previously feared.

        India has the seemingly right conditions for a high number of cases and rapid transmission:

      • Investing Amid a Rising Range of Outcomes

        28 April 2020   |  

        The Q1 market selloff was broad-based and intense, fueled by deep uncertainty about the pandemic’s true threat. In our view, the market did little to discriminate among individual firms, preferring to re-rate sectors given the short timeframe, rapid price action and lack of information.

        Of course, our process is built to capitalize on market dislocations, when fear and uncertainty dominate, as is the case in our current environment. But we are also vigilantly risk-aware. This is where a thoughtful and repeatable process makes all the difference. 

      • Six Noteworthy Oil-Related Charts

        23 April 2020   |  

        Oil has been the lead story recently—for a few reasons. In January, Saudi Arabia and Russia kicked off a heated competition for market share—after several years of cooperating and coordinating output in order to attempt to control oil prices. The result has been a well-documented collapse in oil prices—and growing challenges for oil producers and investors alike. Though it seems the near-term race to the bottom may have concluded, it also seems unlikely prices rocket back in the near term. Here are six interesting charts showcasing some of the recent phenomena.

      • A Closer Look at Global Fiscal Packages

        14 April 2020   |  

        Governments globally have responded to the ongoing COVID-19 pandemic variously—some have effectively shuttered their economies, full stop; others have taken less radical approaches (like Sweden). Similarly on the fiscal front, some governments have passed sweeping spending packages aimed at dulling a full shutdown’s likely economic impact. Top of this list in terms of scale is the US, where Congress passed and the President signed a roughly $2 trillion aid package on 27 March 2020. In the intervening weeks (yes, it’s only been weeks—believe it or not), some countries have followed suit—in intention if not in magnitude. Japan’s cabinet approved a $1 trillion package on 7 April. The EU is struggling to agree on a €500 billion package (more on the EU momentarily). 

      • Maintaining a Long-Term Orientation Amid Heightened Volatility

        07 April 2020   |  

        Amid significant market volatility due to the COVID-19 pandemic, we remain steadfast in our commitment to our investment philosophy. With a foundation in long-term structural tailwinds, resilient businesses and strong operators, our approach is designed for not only good times but challenging ones as well. Acknowledging the unprecedented nature of these circumstances and the uncertainty of a global health crisis, we thought a few words about our investment approach and how the investment team is spending its time would be appropriate.

      • Backed by the Fed, Corporates Borrow Record Amount

        06 April 2020   |  

        Despite the worst selloff for credit since the great financial crisis, investment grade companies set a record level of new issuance in March. The thawing of primary market activities comes just two weeks after the Fed returned to its crisis-era playbook, announcing several new emergency lending facilities to contain the fallout of the COVID-19 pandemic—including the unprecedent measure of purchasing investment grade debt in both the primary and secondary markets. Facing evaporating liquidity and a severe contraction in credit conditions, the Fed effectively moved to become the liquidity provider of last resort to facilitate price discovery, reopen primary market activity and stave off the risk of a potential credit crisis.

      • Evolution of a Crisis Response—Part 5: Market Liquidity

        03 April 2020   |  

        This is part 5 in a series discussing Artisan Partners’ response to the COVID-19 outbreak. Read part 1 here, part 2 here, part 3 here and part 4 here.

        Long-term, sophisticated relationships require two willing partners. By design, our client base consists of long-term, sophisticated investors in two primary groups: 66% of our AUM is from institutional clients, and 29% of our AUM is sourced through financial intermediaries—including broker/dealers, bank trust departments and financial advisors. Over the years, these two groups have adopted similar research processes for selecting their investment management partners and have asked relatively similar questions of us. As I alluded to in my last post, one of the critical recent questions we’ve been getting is how liquidity currently looks in the markets—a multifaceted question. 

      • Evolution of a Crisis Response—Part 4: The Perspective Shifts

        02 April 2020   |  

        This is part 4 in a series discussing Artisan Partners’ response to the COVID-19 outbreak. Read part 1 here, part 2 here and part 3 here.

        Leading a large organization during a global crisis gives you a front-row seat to clients’ and shareholders’ evolving thought processes and concerns. We started receiving questions from our clients in early March. At first, their focus was primarily on our business continuity plan—whether we have a formal plan and structure in place to allow us to continue business as usual and whether we were prepared to deploy it should circumstances warrant. Clients asked questions like: Could our employees work from home if necessary? Would our systems and existing technology support a remote workforce? As discussed in prior posts, business continuity planning has long been part of our normal operations, so we were pleased to readily answer these early questions in the affirmative. 

        Over the ensuing weeks, the questions’ tenor shifted a few times.

      • Navigating Volatility in Global Equity Markets

        01 April 2020   |  

        As the COVID-19 pandemic continues to drive heightened uncertainty and historic daily volatility, we thought an update may be appropriate. We are closely monitoring this rapidly evolving situation, remaining focused on our deep company analysis in order to understand the impacts to businesses’ growth outlooks, as appropriate. As this crisis has unfolded, companies have revised their revenue and earnings outlooks sharply lower. While supply-chain disruptions emanated from China as early as January, the economies of Western Europe and the US are just now experiencing their corresponding demand shocks.

      • Evolution of a Crisis Response—Part 3: Communication

        01 April 2020   |  

        This is part 3 in a series discussing Artisan Partners’ response to the COVID-19 outbreak. Read part 1 here and part 2 here.

        With our associates around the world working from home, one of the next challenges was ensuring they were all talking effectively under unusual circumstances. From a business standpoint, it doesn’t really matter if everyone is working remotely if they’re unable to maintain their standard practices and actually get their jobs done efficiently and well. Communication is paramount during periods of uncertainty—not only with and among our associates, but also with our clients and shareholders.

      • Evolution of a Crisis Response—Part 2: Mobility

        31 March 2020   |  

        This is part 2 in a series discussing Artisan Partners’ response to the COVID-19 outbreak. Read part 1 here.

        Getting a global, 400+ member workforce out of the physical offices and home is one thing. Getting them on the network and ensuring it doesn’t crash and remains secure is another altogether. So how have we done it?

      • The Decline and (Nascent) Bounce—in Pictures

        31 March 2020   |  

        An interesting tidbit: The 11 trading days between Friday, 13 March 2020, and Friday, 27 March 2020, represented the fastest shift in market history from bull market to technical bear market and back to bull market. The next closest was in 1929 but wasn’t particularly close—18 days. (HT: Morgan Stanley)

      • US Labor Market Gets Sick: Jobless Claims Soar

        30 March 2020   |  

        US initial jobless claims hit a record of 3.28 million last week. For perspective, the previous weekly record for workers filing for unemployment benefits was 695,000 in 1982 (Exhibit 1). From another angle, the latest weekly total is 1% of the entire US population and 2% of the US civilian labor force.

        Exhibit 1: US Intial Jobless Claims

        Source: St. Louis Fed, as of 28 Mar 2020. Gray bars represent recessions as defined by the NBER.

         

        Nobody can be positive what future weekly jobless claims will look like—it’s not unreasonable to call current circumstances unprecedented, epic, maybe even inconceivable. But a couple of generalizations already seem reasonable.

      • Evolution of a Crisis Response—Part 1: Introduction and Background

        30 March 2020   |  

        The recent COVID-19 pandemic and accompanying market volatility have presented unprecedented challenges for firms globally—Artisan Partners is no exception. The crisis’s rapid evolution—from the World Health Organization’s (WHO) declaration of a public health emergency of international concern on 30 January 2020, to the virus’s identification as COVID-19 on 11 February, to the WHO’s characterizing the outbreak as a pandemic on 11 March—has given the world little time to prepare. Companies who maintained ready-to-deploy, updated business continuity plans (BCP) have likely had an edge in ensuring relatively uninterrupted and seamless ongoing service.

        In late-January, it became clear COVID-19 was a risk beyond China’s borders and could pose a threat to Artisan associates traveling or working in remote locations. Accordingly, our corporate crisis management team met on 29 January to assess the situation and determine our next steps.

      • Emerging Markets Opportunities Amid Market Volatility

        23 March 2020   |  

        Global financial markets have been experiencing sharp drawdowns and extreme volatility. Although the catalysts may be unique—COVID-19 and an oil price war between Saudi Arabia and Russia—the occurrence of such dramatic turns in global financial market and economic conditions is not. We believe a narrow focus on sustainability helps account for such unpredictable periods. While we are not immune to these gyrations, we believe we are also in a period of opportunity. We continue searching for companies with sustainable competitive advantages or unique access to growth—characteristics that enable companies to persist through volatility, succeed after the dust settles, and generate alpha over the long term. 

      • Disciplined Value Investing in Volatile Times

        20 March 2020   |  

        In my nearly 30-year investing career, I have been through a number of stock market routs. This one ranks up there as one of the worst—if not for its depth (which remains as yet undetermined), then certainly for its intensity. The market has sold off faster than ever in history, and I have never seen more days of double-digits or nearly double-digits declines in such a short time period. This makes sense, as it’s probably the fastest drop-off in economic activity we’ve ever seen—one day, everyone’s at work; the next, everyone’s at home and all the restaurants are closed. The panic and fear are extreme, with emotion filling the void where information and analysis normally exist. Yet in every instance during my career, periods of fear and panic have presented incredible bargains; I believe this one is no different. I have learned that when it feels really bad, it’s usually the best time to allocate capital. It is painful and ugly right now, but our goal is buying the long-term survivors and compounders to position the portfolio for strong multi-year gains later. 

      • Volatility Creates High Yield Opportunity

        18 March 2020   |  

        Escalating concern around the containment of COVID-19 and its impact on global economic growth has sparked an aggressive turn in risk sentiment over the last few weeks. The selloff in noninvestment grade markets has been unprecedented in terms of speed and severity. The repricing of risk has resulted in high yield spreads moving from under 400bps to more than 900bps in just 4 weeks (Exhibit 1). For context, it took 11 months during the 2008 recession for spreads to cross the same threshold, and more than 28 months during the 2000 downturn.

      • Thoughts on Recent Market Volatility

        16 March 2020   |  

        Escalating COVID-19 concerns and Saudi Arabia’s decision to cut oil prices and boost production have prompted a sharp selloff in global equity markets over the past month. We are monitoring both situations closely and believe the biggest relative performance risk from here is massive volatility. While there will likely be large up days for battered sectors, we expect a drift lower on balance until the true extent of the COVID-19 impact can be discounted into stock prices. 

      • Artisan Partners’ Business Continuity Planning Amid COVID-19

        12 March 2020   |  

        At Artisan Partners, we take tremendous care to safeguard our goal of generating successful outcomes for our clients; our associates’ and clients’ well-being is our highest priority. We have a thoughtful and robust Business Continuity Management Program to ensure the safety and security of our associates and the continuation of business operations with as little interruption to our ability to serve clients as reasonable.

        Given the fluidity of the COVID-19 situation, our Business Continuity Planning and Pandemic Preparedness committees have been regularly meeting jointly to ensure we are well-positioned to quickly adjust and react as circumstances warrant. This working group’s focus is evaluating the outbreak’s status, monitoring local and global governmental websites, adjusting the firm’s COVID-19 guidelines accordingly and bolstering our ongoing business continuity plan as needed. 

      • Beyond Brexit

        13 February 2020   |  

        Just when it seemed Brexit was behind us and sailing might be smoother, there have been a handful of recent political shake-ups in and around Europe.

      • Germany at a Crossroads

        10 February 2020   |  

        With stereotypical German efficiency, Chancellor Angela Merkel lined up her presumptive heir, Annegret Kramp-Karrenbauer, two years ago. But Merkel’s plan fell apart on 10 February when Kramp-Karrenbauer relinquished her post a as head of the center-right Christian Democratic Union (CDU) party and said she would not run for Chancellor in the 2021 national election.

      • Brexit: UK Says Goodbye, but Not So Fast

        07 February 2020   |  

        At 11pm GMT on January 31, 2020, the UK officially Brexited. While Prime Minister Boris Johnson and fellow Brexiteers jubilantly celebrated the UK’s departure from the EU, both sides will soon sit back down to discuss what comes next.

      • Are Flash Boys Becoming Too Efficient?

        28 January 2020   |  

        Perhaps the adage, “Time is money,” is no truer anywhere than in equity markets. Some new research into high frequency trading (HFT) by the UK’s financial regulator, the Financial Conduct Authority, has quantified how much money may be tied to miniscule amounts of time—its answer: $4.8 billion, which represents the estimated revenue traders make from capitalizing on “slightly out-of-date prices.” Flash Boys kind of stuff.

      • About Impeachment . . .

        17 December 2019   |  

        As the last two impeachments (and possibly the one prior, too) have shown, impeachment has basically become a political way to say you don’t like the other guy. Whether that should be the case, whether the various parties were right to dislike him, whether they should have used other means to make their point—all topics for another day. In the current case, no matter what anyone thinks of President Trump, House Republicans or Democrats, Senator McConnell, Speaker Pelosi or anyone else in the ongoing theatrical production known as impeachment, US stocks have spoken loud and clear in 2019 (to date): They don’t care one whit about impeachment. 

      • Brexit Beckons

        13 December 2019   |  

        Well, Prime Minister Boris Johnson has done it. Nearing four years after the UK’s referendum, it now seems almost certain the UK will officially leaving the EU early in 2020, following an election most have justifiably described as a landslide for the Conservative party and a rout for Labour and the Liberal Democrats.

      • Finding Value Across the Capital Structure

        31 October 2019   |  

        One of my fundamental beliefs about investing in credit markets is it’s possible to find the best risk-adjusted return opportunities through fundamental credit analysis and value identification across the capital structure—flexing between high yield bonds and bank loans. I take a value investor’s approach to the below-investment grade market to look for opportunities tied to dislocation and mispricing.

      • In the News

        16 October 2019   |  

        Earnings season kicks off as usual with the big financials, while the UK and EU seem to be making progress. 

      • Interest-Rate Limbo—How Low Can You Go?

        15 October 2019   |  

        Interest rates

        Just when it seems like monetary policy has gotten as abnormal as possible, a monetary authority says, “Hold my beer.” Among the more extraordinary examples is and has been Japan, where the Bank of Japan is considering ways to force already negative interest rates further negative.

        This is the painting of oneself into a corner. On one hand, Japan is carrying a tremendous government debt load—well over 200% of GDP at last count. On the other, all that government spending seems not to be generating the anticipated economic activity. Rather, growth is stagnant, as is inflation, while the population is declining—a deadly combo. Meanwhile, the government’s hyper-focus on keeping exports up requires it to maintain an artificially undervalued yen.

      • Greece's Dramatic Decade

        11 October 2019   |  

        What a difference a decade makes: Greece, which not long ago was bailed out not once, but twice, and whose interest rates seemed headed for triple digits, has issued negative-yielding debt. Exhibit 1 shows generic Greek 10-year yields since 2010—and their dramatic fall. 

      • In the News

        10 October 2019   |  

        A busy day with ample interesting headlines.

      • In the News

        08 October 2019   |  

        A smattering of global headlines.

        Investors Should Fear More Competition Among Ratings Companies
        Does competition among ratings agencies tend to lower the bar or raise it? The evidence presented here would suggest it lowers the bar. Perhaps the way to address the ratings agencies is to fundamentally restructure the business model—for example, if potential buyers paid for ratings, instead of the issuers, agencies would have an incentive to provide an accurate rating to the buyer, rather than satisfy the issuer they were looking sufficiently favorably on their business. Just one idea (with its own flaws—no solution is perfect). 

      • In the News

        04 October 2019   |  

        Softer economic data continue rolling in—prompting rather unsurprising reactions from both equity and bond markets. Plus, we have a new head of the IMF along with a deep dive into the Mexican oil industry to round out the week.

      • In the News

        02 October 2019   |  

        Just one day into the quarter, markets are off to a rough start—likely resurfacing memories of Q4 2018 and raising questions about whether we’re in for a redux. Time will tell, of course, and in the meantime, here are some of today’s interesting headlines.

      • Brazil Welcomes Trade, Ricardo Cheers

        24 September 2019   |  

        Flags of world nations

        President Jair Bolsonaro’s young tenure as Brazil’s leader has been tumultuous since he was sworn in on January 1, 2019. But from purely an economic standpoint, one clear positive has been his leadership on trade. Since the EU and Mercosur (the South American trade bloc) inked a deal to create a new trade bloc in June, Bolsonaro has taken steps aimed at holding up Brazil’s end—the most recent: lifting tariffs on some 2,300 imported products (no doubt raising a posthumous cheer from David Ricardo).

      • About That Irish Backstop …

        20 September 2019   |  

        A key hold-up in Brexit negotiations is the so-called Irish backstop—which has to do with the fact that the only physical border between the UK and an EU country is that between the Irish Republic and Northern Ireland. This introduces questions about how trade between the two will be conducted once the UK (and Northern Ireland with it) is no longer in the EU, but Ireland remains part of the common market. 

        In one sense, these tensions go back centuries, resurrecting questions that have long-plagued the island about its proper place—as a country, in relation to the UK, and in relation to the rest of Europe. And then there is the age-old religious divide between Catholics and Protestants.

      • In the News

        19 September 2019   |  

        Another busy day in monetary policy and macroeconomic news. Here’s a handful of the headlines that caught our interest.

      • In the News

        17 September 2019   |  

        The repo market garnered a lot of attention as rates spiked, prompting the Fed to provide additional liquidity to bring rates down—just one of several monetary policy headlines today.

      • Enhancing Fundamental Research With Analytical Tools

        12 September 2019   |  

        In addition to rigorous bottom-up research, the Thematic team leverages a slew of analytical tools to eliminate subjectivity and manage risk. 

      • Can Countries Improve Their Corporate Governance Practices?

        12 September 2019   |  

        Artisan Partners International Value Team Portfolio Manager David Samra discusses whether he believes countries can improve their corporate governance standards over time. 

      • The Impact of Negative Rates and Passive Investing

        12 September 2019   |  

        Global Value team portfolio manager Dan O’Keefe discusses the impact of passive investing on price discovery. 

      • Identifying Long-Term Opportunities in the International Small-Mid Universe

        12 September 2019   |  

        Portfolio manager Rezo Kanovich explains why a long-term investment horizon and a contrarian view are cornerstones of his team’s approach. 

      • Identifying Value Amid a Shifting Rates Outlook

        12 September 2019   |  

        Founding portfolio manager Bryan Krug discusses where he’s finding opportunities in the high yield market given the recent move in interest rates. 

      • Risk Awareness and Downside Protection

        12 September 2019   |  

        After witnessing firsthand two massive market corrections, portfolio manager Tom Reynolds discusses his acute focus on risk management and downside protection.  

      • In the News

        11 September 2019   |  

        Lots of stimulus talk making today’s headlines. Whether global economies are on the verge of recession is unknowable—but global leaders are certainly keen to calm nerves lest investors fret their abilities to respond in the face of such a slowdown.

      • Broken Brexit?

        06 September 2019   |  

        Hard as it is to believe, the British voted to leave the EU almost 1,200 days ago—yet the country seems no closer to Brexiting than it was on June 22, 2016. How have we arrived (or rather, not arrived) at this point? 

      • In the News

        05 September 2019   |  

        Investors are turning their attention to the upcoming US Fed policy meeting, at which the majority expects a rate cut. We have today’s Fed headlines and other major global news:

      • In the News

        03 September 2019   |  

        Ample headlines coming off a long weekend in the US—from the inverted yield curve to ongoing global geopolitical machinations of various stripes: 

      • In the News

        23 August 2019   |  

        No August lull in 2019, with global monetary policy chiefs meeting in Jackson Hole, WY, and the ongoing trade dispute between China and the US garnering ample attention. Among today’s headlines:

      • In the News

        22 August 2019   |  

        Making headlines today is a variety of economic news, including more data which send contradictory messages about the expansion’s resilience. A sample:

      • Banks Get Some Relief in Volcker-Rule Changes

        21 August 2019   |  

        Banks Get Some Relief in Volcker-Rule Changes

        US regulators are easing some of the regulatory headwinds that have faced US financial institutions since Dodd-Frank’s 2010 passage. The recent focus has been on some of the more complex and onerous Volcker rule requirements—which sought to limit banks’ ability to speculate with their own funds. The rule is based on the assumption that such short-term trades only benefit the banks—not their customers—and should therefore be limited. Further, the rule put the onus squarely on the banks to prove otherwise for every transaction that occurred within a 60-day window. 

        The assumption is faulty, though.

      • The Disparate Impact of Brexit on UK-Domiciled Companies

        20 August 2019   |  

        The Brexit deadline is looming. Again. While it doesn’t seem inconceivable the can could be kicked yet again, as things currently stand, the UK will leave the EU with or without a deal on October 31. For investors, a clear concern is just how a post-Brexit world will impact companies domiciled in the UK. While it’s nearly impossible to predict with any measure of certainty, the thought experiment is worthwhile.

      • Gold Price Tops $1,500

        19 August 2019   |  

        Consider first this headline—Gold Price Tops $1,500—and then consider this combination of recent events:

      • Not All PEs Are Created Equal

        31 May 2019   |  

        Value investing is out of favor. That may be a gross understatement. Growth has outperformed value in 8 of the past 10 years—2011 was a dead heat, and value bested growth in 2016 only to trail by a relative 14% over the next 2 years. According to some measures, growth stocks trade at a nearly 50% premium to their value counterparts. That should be cause for some optimism from the value crowd as such extreme disparities tend to sow the seeds of their own undoing. That said, we saw growth premiums stretch as high as 100% during the dot-com era.

        We must admit we don’t spend much time worrying about this. We focus on the economics, not the machinations of the market per se or which way the winds of popularity blow. Economics endure and ultimately prevail.

        So in this market of massive growth premiums, what is for sale in the value bin?

      • Defining Sustainability in Emerging Markets

        30 April 2019   |  

        To me, sustainability means having the ability to endure. It includes—but goes beyond—environmental, social and governance (ESG) considerations. More broadly, it entails businesses making the right strategic choices that bring continuity to their shareholders, employees, customers and the communities around them. Ultimately, my team invests in emerging markets because as a team of people who were born, educated and have spent large amounts of time in these countries, we want to direct capital to companies that can have a long-term positive impact on emerging markets’ people.

        We believe companies manifest and embody sustainability in a variety of ways. 

      • The Transformative Power of Data and Workflow Automation

        30 April 2019   |  

        The printing press, invented in Europe around 1440 CE, was for roughly the next 500 years the primary means of generating and storing data. However, since the advent of computers in the mid-1990s (depending on which model you consider the “first”), we’ve seen an attendant explosion of data, which is only accelerating.

        Moore’s Law projected the number of transistors that can fit on an integrated circuit would double roughly every two years—which has proven particularly accurate. Remarkably, the rate at which data are being generated is even faster than Moore’s Law. However, the combination of 3 billion people on the Internet with mobile apps and sensors in an increasing number of smart devices is a recipe for an exponential increase in data which computers will have a hard time keeping up with—not only from a storage standpoint, but also a processing standpoint. The need to find ways to harness, understand and use data will ultimately transform the way we work. 

      • Harnessing the IoT

        31 March 2019   |  

        We’ve gone from smartphones and smart TVs to smart factories, smart health, smart cars and smart homes—connectivity has become deeply ingrained in our society. Low-cost sensors, along with cheaper and faster computing resources, are enabling the connectivity of the real world in a paradigm shift to what is called the Internet of things, or the IoT.

        With growing connectivity comes still more data— we’re just scratching the surface on the scale of what data generation will be. Data creation in general is already doubling every two years, and it’s estimated machine data can grow 50 times over the next 5 years.

        How can investors capitalize on the data and analytics explosion?

      • Data and the IoT

        07 March 2019   |  

        Thematic Team portfolio manager Chris Smith discusses the opportunities his team is finding thanks to the rising importance of the Internet of things (IoT). 

      • The Artisan Difference

        07 March 2019   |  

        Thematic team portfolio manager Chris Smith explains why Artisan Partners is the right place for his team. 

      • Thematic Idea Generation

        07 March 2019   |  

        Thematic team portfolio manager Chris Smith discusses his team’s thematic approach to idea generation. 

      • Investing in the Automobile of the Future

        28 February 2019   |  

        The automobile industry is experiencing massive change as a result of increased demand for electric and hybrid cars that require batteries and the evolution of autonomous driving features that rely on connectivity. We believe these structural shifts are enduring and offer potential opportunities for long-term oriented investors, such as ourselves. However, investors will need to be discerning as both winners and losers will emerge.

      • The Search for Sustainable Growth

        31 January 2019   |  

        After global growth gained momentum through 2016 and 2017, the investment outlook turned cloudier in 2018. Concerns about decelerating economic and earnings growth due to normalizing monetary policies, softening global growth and US-China trade tensions drove a sharp increase in equity market volatility, leading to the MSCI All Country World Index’s worst calendar year since 2008. No regions were unscathed: Europe, Japan and emerging markets were each down double-digit percentages, while the US market fell 5% for the year.

        In contrast to the rest of the world, the US economy strengthened in 2018. The substantial fiscal stimulus in the form of tax cuts contributed to stronger economic growth and corporate profits. Yet, with tax reform in the rearview mirror, growth rates are inclined to come down in our estimation as comparisons become more difficult in upcoming quarters. In addition, margins are at risk as the costs of raw materials, labor and interest are increasing.

      • Credit at a Crossroads

        31 December 2019   |  

        Market volatility at the end of 2018 understandably tipped off an array of analysis—from whether it marked a larger turn in the economic cycle and the market to whether it increased the attractiveness of some investing opportunities. And if the latter, where those opportunities might lie. We believe that despite some signs of economic softening, the broader economic and market cycle are likely not over. Further, volatility has indeed introduced new compelling investing opportunities—though likely not where many would first look.

      • Late-Cycle Credit Investing

        30 September 2018   |  

        There appears to be growing anxiety among investors that the current credit cycle, now more than 10 years old, is nearing old age and susceptible to a downturn. The implications for high yield credit investors is obvious, as the end of credit cycles tends to coincide with a marked uptick in corporate defaults and asset price corrections.

        While we’re mindful we’re closer to the end of the current cycle than the beginning, we see no near-term catalyst to suggest high yield markets are approaching an inflection point.

      • A Forward-Looking Approach to Sustainability

        30 September 2018   |  

        Portfolio Manager Maria Negrete-Gruson explains how the sustainability of a company's earnings goes hand-in-hand with its environmental, social and corporate governance factors. 

      • ESG in Emerging Markets: A Differentiated Perspective

        30 September 2018   |  

        Sustainable Emerging Markets Portfolio Manager Maria Negrete-Gruson discusses her team’s differentiated perspective on identifying ESG opportunities in emerging economies.

      • The Digital Payments Revolution

        31 August 2018   |  

        We think there are several secular tailwinds contributing to the massive ongoing shift toward digital payments. First, we’re seeing rapid growth in e-commerce, which requires that customers be able to make secure, digital payments. The growth in cross-border transactions and the general impact of an increasingly globalized marketplace are helping accelerate this trend. Second, technological innovations that simplify cash transactions—such as Square and Uber, as well as point-of-sale devices in areas they’ve not historically been, such as taxis, vending machines, parking meters, etc.—are helping drive digital payments growth.