- The inflationary period we’re in is transitory but could last up to two years, says Jim Smigiel.
- Several stocks in the commodities sector are overpriced, he says.
- Being “positive on inflation sensitive assets” has helped his fund outperform its peers, he says.
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A broad-based approach that is responsive to macroeconomic factors lies at the heart of strategy building for Jim Smigiel, SEI’s chief investment officer.
The firm manages or administers approximately $1 trillion in hedge, private equity, mutual fund and pooled or separately managed assets, including approximately $384 billion in assets under management and $836 billion in client assets under administration. In the Dynamic Asset Allocation Fund ($875 million in AUM) that he manages, Smigiel was in the 91st percentile at the one-, three-, and five-year marks, according to Bloomberg.
His approach to the current inflationary environment is one that also requires an expansive view and echoes the June FOMC remarks that the world waited for with bated breath. On Wednesday, Federal Reserve members remained firm that the recent spike in inflation was “transitory,” and also kicked off discussions on tapering its bond purchases.
While Smigiel agrees that the current period is transitory, he argued that it could last for two years rather than a few months as the world slowly…