Alpha in Dispersion: Why Macro Volatility Is Fueling Outperformance

BlackRock Investment Institute’s latest commentary explains why elevated macro uncertainty—driven by tariffs, geopolitical fragmentation, and structural shifts—may create one of the best environments for alpha generation in over a decade.

• Tariffs amplify dispersion: U.S. trade policy uncertainty is widening return differentials across sectors and securities, favoring active selection.

• Macro-aware strategies outperform: Since 2020, top-quartile managers have significantly outperformed peers by dynamically managing macro and factor risk.

• Granular positioning is key: Targeted exposures in AI-related equities, EU financials, and short-duration fixed income can enhance returns amid volatility.

Could your current allocations capture the alpha on offer? The full report highlights tactics for navigating dispersion in a regime defined by structural change.