Brian Singer, co-portfolio manager of the William Blair Macro Allocation Fund, discussed how his Dynamic Allocation Strategies team uses geopolitical analysis (game theory) to assess how the Spanish elections create potential opportunities and risks in a recent Bloomberg interview. He believes that the Spanish equity market provides significant opportunities.

The investment team first uses fundamental analysis to identify value/price discrepancies, which reveal where opportunities exist. It’s the next step in the investment process where game theory helps the team evaluate and navigate geopolitical risks that impact market prices.

In the Bloomberg article, Singer discussed how he and his team use a game theory framework to analyze Spain’s political leaders to determine the likelihood of the pro-market Ciudadanos and incumbent People’s Party forming a coalition.

“Spain is a great opportunity,” Singer told Bloomberg. “Spain made tremendous strides to reform its banking sector and made a lot of progress throughout these years. The political risk is the only barrier to investment.”

Game theory analysis examines players’ objectives, which helps to create a framework for understanding their actions and communications. Singer noted that he believes the market is too pessimistic about Ciudadanos and People’s Party forming a coalition—and that Ciudadanos is the most likely party to concede in negotiations. “Ciudadanos has been slowly migrating towards the center, where it tries to establish itself as a viable center-right option,” Singer said.

The Bloomberg article also highlighted how Singer is using game theory analysis to better understand the motivations and actions of the Islamic State and Turkish President Recep Tayyip Erdogan, as well as how the migrant crisis and Greece’s debt negotiations could impact the eurozone and how the U.S. presidential elections could impact U.S. stocks.

Read Brian Singer’s Bloomberg Interview

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Please carefully consider the Funds’ investment objective, risks, charges, and expenses before investing. This and other information is contained in the Funds’ prospectus, which you may obtain by calling +1 800 742 7272. Read it carefully before you invest or send money. Investing includes the risk of loss.

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Factual information has been taken from sources we believe to be reliable, but its accuracy, completeness or interpretation cannot be guaranteed. Investments are subject to market risk. Forecasts, estimates, and certain information contained herein are based upon proprietary research and should not be interpreted as investment advice, as an offer or solicitation, nor as the purchase or sale of any financial instrument. Statements concerning financial market trends are based on current market conditions, which will fluctuate.

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Copyright © 2017 William Blair & Company, L.L.C. "William Blair” is a registered trademark of William Blair & Company, L.L.C. No part of this material may be reproduced in any form, or referred to in any other publication, without express written consent.

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Please carefully consider the Funds’ investment objective, risks, charges, and expenses before investing. This and other information is contained in the Funds’ prospectus, which you may obtain by calling +1 800 742 7272. Read it carefully before you invest or send money. Investing includes the risk of loss.

Any statements or opinions expressed are those of the author as of the date of publication, are subject to change without notice as economic and markets conditions dictate, and may not reflect the opinions of other investment teams within William Blair Investment Management, LLC or the Investment Management Division of William Blair & Company, L.L.C.

This content is for informational and educational purposes only and not intended as investment advice or a recommendation to buy or sell any security. Investment advice and recommendations can be provided only after careful consideration of an investor’s objectives, guidelines, and restrictions.

Factual information has been taken from sources we believe to be reliable, but its accuracy, completeness or interpretation cannot be guaranteed. Investments are subject to market risk. Forecasts, estimates, and certain information contained herein are based upon proprietary research and should not be interpreted as investment advice, as an offer or solicitation, nor as the purchase or sale of any financial instrument. Statements concerning financial market trends are based on current market conditions, which will fluctuate.

William Blair does not provide legal or tax advice. Please consult your tax and/or legal counsel for specific tax questions and concerns.

Distributed by William Blair & Company, L.L.C., member FINRA/SIPC.

Copyright © 2017 William Blair & Company, L.L.C. "William Blair” is a registered trademark of William Blair & Company, L.L.C. No part of this material may be reproduced in any form, or referred to in any other publication, without express written consent.

Statement of Financial Condition | NMS Rule 605 & 606 | Business Continuity Plan | UK Stewardship Code
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