The MDT factor

Video transcript MDT’s investment approach is quite different to many other active managers you may come across in the market. There are collectively a few things that I think really differentiates MDT from our peers. First off is our experience. We’ve been managing our investment process now for over 30 years. We’ve been able to […]

The US SMID revival: Why this quiet rotation matters

small, felt US flag, pinned into a toy globe

Valuations are attractive, but this time there’s more At the 14-year mark, the current outperformance cycle by US large-cap stocks over small cap is well past the historical 10-year average. US small and mid-cap (SMID) companies have been out of favour since the pandemic due to the high-interest rate environment, growing geopolitical tensions, recessionary concerns […]

Meet the Manager: MDT’s Kelly Patel

Birds eye view of a blue lake in a national park

Video transcript What’s your role at Federated Hermes? My name is Kelly Patel and I’m the Portfolio Analytics Manager for the MDT team at Federated Hermes. I began working at MDT straight out of college, and I’ve spent my entire professional career here since. Throughout my career I’ve worked in a variety of analytical roles […]

Bond markets fret over rising budget deficits

Flashing 'sell' signs on a bourse screen

market snapshot

Is global high yield a short duration market now?

a view from above of a road winding through a forest with purple colouring

The duration of the global high yield (GHY) market is below its long-term average and quite a distance from its peak. Figure 1 shows duration at around three years, which is by far the lowest it has ever been. This compares to a long-term average of just over four years. This 25% decline in duration […]

Which indices have surprised on the upside?

Lake through a camera lens

Chartology

360°, H2 2025

A view from above of a road spanning a body of water. Forests are visible on either side of the water and a blue car is driving across the road on the right hand side.

How not to be a deer caught in the ‘headlines’

The AI toolbox

Video transcript At MDT, we’ve been a big believer in AI and machine learning for a long time, and we have long integrated machine learning into our investment process. Our decision trees can be a powerful way to produce alpha forecasts while enabling us to understand and explain the rationale behind every trade. We believe that in making forecasts […]

When risk is underpriced, quality is all the more valuable

a woman is rock climbing. She is suspended by a rope from a cliff face

High yield is all about risk and reward – and lately risk isn’t being priced appropriately.  We remain defensive in our high yield positioning for two reasons, one macro in nature while the other involves dynamics within the market itself. What they have in common is an underpricing of risk and a need to focus on […]

New name, same philosophy

Colourful boats on calm water

(Re)introducing: Global SMID Equity Engagement*