Disciplined amid Disruption

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.

GMO’s Asset Allocation team discusses the lottery like appeal of growth stocks, how it often leads to lower returns, and why today’s valuations favor value.

In this year-end letter, John Thorndike, Warren Chiang, and George Sakoulis discuss GMOV and GMOI results for 2025 and their outlook for 2026.

GMO’s Structured Products team explores how high quality structured credit can improve carry, reduce spread risk, and strengthen downside protection when spreads are tight.

For investors, the real opportunity in investing in AI lies in distinguishing between companies with durable competitive advantages and those exposed to the boom-and-bust cycle.