Tariffs, Tech, and the Tug-of-War for Alpha

August 2025

The second quarter of 2025 put equity markets on a rollercoaster of policy shocks and technological surges.

President Trump’s “Liberation Day” tariffs sent markets tumbling, only to rebound days later in a relief rally that stretched across geographies. Legal challenges, new trade deals, and the looming threat of fresh tariff hikes kept investors on edge, forcing active managers to rethink positioning in real time. At the same time, artificial intelligence (AI) continued its transformation from niche theme to market-moving force, driving both index concentration and portfolio performance. In this edition of Meeting of the Minds, our Public Markets Equity Research team cuts through the noise. From tariff-driven rotations to AI-fueled headwinds, from quality’s setback in small caps to the growing risks of index concentration, we explore how managers are adapting and where opportunities may emerge.