Venn by Two Sigma August 2023 Factor Performance Report: Equity Styles Outperform and China Weighs on Emerging Markets

In August, five out of six of Venn’s equity styles outperformed while China weighed on our Emerging Markets factor.

In this post we reveal the third and final step we think investors should consider when trying to view their private assets through a public lens: extrapolation.

Factor analysis serves as a reminder that even the simplest strategies, such as investing in market-cap weighted global equities, are often more nuanced than meets the eye.

Venn by Two Sigma is excited to introduce Report Lab, a new workspace where investment professionals can create customized reports for their clients and internal constituents. Report Lab was designed to streamline the creation of presentations, proposals, slides and more.

ITERAM Capital, an asset manager specializing in investment solutions, has partnered with Venn by Two Sigma to help with several key workflows: risk management, portfolio construction, ongoing sourcing and research.

NEW YORK – August 9th – Venn by Two Sigma (“Venn”), the leading portfolio analytics platform for professional investors, today announced the launch of Report Lab, a new analytics and presentation solution to generate client-ready reports and proposals. Developed in partnership with Venn’s existing clients, Report Lab helps investment teams more effectively communicate data-driven portfolio insights uncovered through Venn.

In the month of July, four out of six equity style factors underperformed, while Value reversed its trend of negative performance. Perhaps more interesting was the central bank action to close out the month, especially from the Bank of Japan regarding their yield curve control policy, and the effects it had on risk factors.

The first half of 2023 saw the deepening inversion of yield curves, decelerating global inflation, banks failing, and strong equity markets. Given these themes, we review H1 2023 Two Sigma Factor Lens Performance.

Heartland Trust's largest challenge was finding a differentiated way to analyze risk in detail. They have partnered with Venn by Two Sigma to help with several key workflows: Data Visualization and Screening, Scenario and Stress Testing, Manager Selection and Private Funds.

Against a backdrop that included the debt ceiling, rising rates, and AI, May was an interesting month for risk factor performance in the Two Sigma Factor Lens.