After entering the year with a cautious outlook, managers have become more defensively postured as the U.S. tariff policy has increased uncertainty.
Managers see mixed opportunities in emerging markets and a broadening opportunity set for small caps across global markets.
During a rocky fourth quarter, strength in the financials sector was a unifying theme across global markets.
Amid expectations of rate cuts from major central banks, managers are increasing their exposure to more cyclical and value-oriented names, including autos, transportation, and short-cycle industrials.
