Sustainable Growth Advisers

Recent Topical Research

The Role of Risk in Portfolio Construction

March 2017

Equity investors, from Warren Buffett to high frequency traders, vary in their emphasis on the “voting machine vs. weighing machine” aspects of the pricing mechanism of the market. Our purpose in writing this paper is to explore this dynamic along with a few related questions that we sense are on the minds of institutional clients.  […]

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The Post-QE World of Unsustainable Growth

September 2016

We are now entering a new investment era, a post-quantitative easing (“QE”) period of subdued nominal growth and returns. The forces defining this period have come into focus now that the dust of the financial crisis has settled and the dramatic policy responses, most notably QE, have run their course. The stalling out of some […]

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Market Volatility & SGA’s Active Returns

December 2015

Global equity markets have recently experienced extreme volatility unlike anything seen since 2011. As of the close of the U.S. markets on Monday August 24th, 2015: – The VIX had spiked to over 40, a three-fold increase from just two weeks prior and a level it had not seen since August 2011. – The primary […]

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Active Management in an Emotionally Charged Episodic World

May 2015

As an employee-owned manager of U.S. Large Cap Growth and Global Growth portfolios, Sustainable Growth Advisers’ success is tied to the investment results and service we are able to deliver for our clients. Like all investment managers, our investment approach is not always in favor, and there are periods when our portfolios underperform passive indexes. […]

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Risk & Complacency – The More Things Change

September 2014

In June of 2007, struck by the apparent level of complacency prevalent in the financial markets (and bruised by more than two and a half years of relative underperformance) we penned a paper highlighting our belief that the perception of risk in many corners of both the corporate and financial worlds seemed to have changed. […]

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Navigating the Fog of Unpredictability

June 2014

Of the many thoughtful questions we have been asked by institutional consultants over the years, one in particular stands out for me: “is your investment approach a philosophy or an active strategy?” That is, are your results a function of the automated application of a philosophy about investing or the product of the team’s collective […]

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Fixed Income Today: Heads, You Win… Tails, I Lose

April 2013

Much has been said and written about the apparent bubble in bonds. At the start of last year we wrote about the clear relative attractiveness of high quality equities as a better therapy for the financial “agita” plaguing investors at the time. Despite high absolute and relative returns over the past year, that opportunity still […]

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