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US market tumult — driven by tariffs, policy gyrations, and threats to the Federal Reserve’s independence — is pushing investors “further afield” to Europe and globally, Neuberger Berman CEO George Walker said at Semafor’s World Economy Summit.
“The dialog around American exceptionalism can return when there’s greater certainty with regards to policy,” Walker said. In the interim, clients are beginning to focus on investment opportunities in regions perceived as relatively more stable, the chief of the $515 billion-asset manager said.
The lack of regulatory clarity — “it’s a spectacularly challenging period,” Walker remarked — is frustrating to both investors and executives. “Sell America” has begun to take hold more broadly on Wall Street, as previously sacrosanct ideas about US assets have come under threat as a result of the Trump administration’s shifting policies.
“I think it could end up being a real positive for Europe that you’ll see, particularly in Germany,” Walker said. The S&P 500 is down roughly 7% year-to-date, widely lagging European indexes.
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The modern Neuberger was born in the wake of the global financial crisis — one of the crown jewels of Lehman’s troubled portfolio — and has managed to grow its managed assets at a steady clip over the last decade.
It is an “active” manager — a stock picker — and it has garnered influence as activist investors have come to dominate boardroom discussions. Winning support from Neuberger can make or break an activist investor’s campaign.
The Semafor View
The boundaryless pools of money that defined finance in the last 20 years are retreating, and capital is becoming a national resource to be protected. Public and private markets seem set to converge: Where they meet — and which firms stake out territory — could determine finance’s winners over the next decade.