Quality Strategy

Through market cycles and dislocations, high-quality equities have proven to be a stable group of exceptional businesses ideally suited to compounding capital.  

The GMO Quality Strategy presents investors with an ideal core equity holding that has delivered strong returns, stability, and downside protection for nearly 20 years and counting.

In 2022 we launched the GMO Small Cap Quality Strategy. Now, a year later, we are pleased to report that our results have exceeded even our most optimistic projections.

In this webcast, Tom Hancock discussed how the GMO Quality Strategy has delivered strong returns to investors with less risk and introduced our recently launched U.S. Quality Strategy.

Ben Inker and Tom Hancock join Meb Faber to discuss why they find quality and deep value stocks so attractive. They also touch on AI, growth traps, and career risk.

In this webcast, Tom Hancock discusses the virtues of Quality, warns of some implementation pitfalls, and discusses why GMO’s long/short Quality Spectrum Strategy may prove particularly valuable in the environment that lies ahead.

We believe long-term and short-term opportunities in quality small cap equity are finally aligned.

In this webcast, Tom Hancock discussed how the Quality portfolio has fared so far in 2022, highlighting areas of opportunity and other relevant topics.

Quality stocks have tended to fare well versus the broad market during inflationary times. Paying attention to valuation alongside quality has delivered even better results.

Though U.S. stocks are expensive relative to history, we consider the extent to which the S&P 500’s elevated P/E is driven by mix and composition effects, along with the temporary impact of Covid-19.

GMO launched the Quality Cyclicals Strategy within a fortnight of the trough that ended 2020’s quickfire bear market. This piece reports our thinking behind the strategy, its progress, and positioning.

For long-term investors searching for a durable equity solution, we believe Quality is the real McCoy.

Even when markets appear expensive – as many do today – it is possible to invest responsibly in equities if you have a strong stock selection process. Active stock picking, declared dead over and over during the formative years of...