Sharat Kotikalpudi
14 Years at AB|16 Years of Experience
Sharat Kotikalpudi is the Director of Quantitative Research in the Multi-Asset Solutions Group at AB, specializing in systematic macro strategies; he leads the group's quantitative research in directional and cross-sectional strategies across developed and emerging markets within equity futures, currencies, rates and commodities. He is also a Portfolio Manager of AB Systematic Macro. Kotikalpudi joined AB in 2010 as a quantitative analyst on the Dynamic Asset Allocation team, where he helped to design and develop the quantitative toolset used in the group’s asset-allocation strategies. He holds a BE in electronics and communication engineering from the Manipal Institute of Technology, India, an MA in mathematics of finance from Columbia University and a PGDM from the Indian Institute of Management Calcutta. Location: New York
Published Work
Rate cuts don’t happen in a vacuum—staying nimble with asset allocation can help investors adapt.
In our view, modestly capping exposures to certain COVID-19-sensitive macro assets can enhance asset-allocation risk management.
With stocks on pace for a banner year, investors haven't missed a beat-despite some sharp retreats. In fact, "buying the dip" has been so prevalent, it adds a new dynamic for multi-asset strategies to consider.
Many multi-asset strategies that focus just on trend-following signals struggled in September’s market sell-off. We think it was a cautionary tale that calls for using an expanded toolbox of indicators when setting up portfolio defenses.
Today's bond yields are extremely low, and some multi-asset investors may be struggling to rationalize exposure to interest-rate driven assets such as government bonds. But past experience suggests that they can still be effective diversifiers over the near term, even at low yield levels.
As risk assets tumbled in late February and March, it intensified the focus on risk management: How can multi-asset strategies defend against turbulence while positioning for an eventual rebound? The answer: Be ready to adapt—and to do it quickly.
Asset allocation, effective portfolio design and dynamic management have always been powerful tools for battling volatile markets, but risk has come into even sharper focus lately. Economic growth is slowing, yields are low and stocks have taken several tumbles. Investors are looking for new ways to tackle risk.
The recent decline in US corporate cash hasn't raised a lot of eyebrows, but it has caused one of our equity-quality indicators to flash a warning. Since equity quality is one of the signals with a strong track record of predicting market sell-offs, should investors be worried?
The US yield curve dipped into inverted territory recently. But that's not necessarily a bad omen for equities. There are several important warning signals—and lately the yield curve's slope is the only one flashing red.
It's taken for granted in financial circles that lower oil prices are a boon for stocks, as they fuel an economy-boosting cycle in which money saved at the pump ultimately flows to the market. But oil prices that are too low could be too much of a good thing.