Disciplined amid Disruption

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).

Investors interested in enhancing diversification and future returns may want to consider four valuation-driven opportunities the GMO Asset Allocation team has uncovered.

AI capex is surging. Yet, history shows investment booms often precede recessions and lower equity returns across most developed markets.