Disciplined amid Disruption

Structural reforms, rising earnings, and attractive valuations suggest Japanese equities still offer meaningful upside despite strong recent returns.

Many still treat 60/40 as a neutral starting point. But after years of market gains, that “default” mix can embed unintended concentration in expensive U.S. growth and credit risk with limited spread cushion.

Research shows that private equity portfolios skew toward smaller, lower-quality companies, increasing downside risk. Ben Inker and John Pease explain how to hedge the resulting bias more effectively.

Ben Inker pens a letter to the Investment Committee addressing the erosion of private equity performance persistence and its implications for institutions with meaningful private equity exposure.

GMO's 7-Year Asset Class Forecast as of April 30, 2026.

Traditional portfolios face rising correlations and shared risks. We explore how liquid alternatives can provide differentiated return drivers, portfolio flexibility, and a more resilient diversification framework.

Value is back, but selection matters. We show why the cheapest 20% of developed ex U.S. stocks look unusually mispriced, and how a framework incorporating quality can help avoid traps.

International deep value remains attractively priced and is a high-conviction, active position across all GMO Asset Allocation portfolios.

In GMO’s latest Quarterly Valuation Update, local currency rates and FX screen cheap/very cheap, while hard currency credit is rich.

GMO's 7-Year Asset Class Forecast as of March 31, 2026.

After three years of live results, small-cap quality proved resilient. Lessons on tracking error, earnings growth, junk rallies, and why disciplined research matters more in small caps now.

How GMO Dynamic Allocation (GMOD) helps with reallocating a balanced portfolio (without the tax drag).