May 2025 Active Management Insights - Tariff Risks Reshape Manager Positioning

2025-05-22 06:30:00 ET

Summary

• Tariff uncertainty is driving defensive equity shifts.
• AI outlooks are evolving amid increased competition.
• China sentiment is improving.
• U.S. M&A activity has stalled.

Originally published on May 6, 2025

5 Key Macro Trends

1. Tariffs are driving equity managers’ defensive posture

After entering the year with a cautious outlook, managers have become more defensively postured as the U.S. tariff policy has increased uncertainty. Global managers have been reducing exposure to the U.S. and rotating toward emerging markets. Within the U.S., equity investors are focusing on companies with stable business models and limited exposure to international trade. Managers observe that many companies are delaying spending and investing decisions until there is greater clarity regarding U.S. tariffs....

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