Opal Capital Featured in Wealth Management's 2026 Market Outlook
- Opal Capital
- Jan 8
- 2 min read
We are honored to share that Opal Capital's Austin Graff, CFA, Founder and Chief Investment Officer, and Manav Shah, CFA, Lead Analyst, were featured in Wealth Management magazine's highly anticipated 2026 Market Outlook issue.
In their piece, "The Hidden Risk of Passive Investing," Austin and Manav explore the changing dynamics of large-cap technology stocks and what it means for portfolio
construction:
"Big technology stocks known as the 'hyperscalers' now make up nearly one-third of the S&P 500. Once celebrated for their 'capital-light' models, these companies could grow rapidly without heavy spending. Today, that's changing. They're now directing 90-100%+ of their operating cash flow into artificial intelligence infrastructure, which, in our opinion, is an area with enormous promise but uncertain returns."
The article highlights why this shift matters for investors: markets have consistently favored companies that produce robust free cash flow, achieve growth without significant cost increases, and demonstrate resilience across economic cycles. With spending now accelerating among these mega-cap names, the attributes that once justified their premium valuations are evolving.
Austin and Manav advocate for a core-satellite approach to portfolio construction, using passive funds as the "core" for broad market exposure while adding "satellites" of active investments to mitigate concentration risk and capture opportunities beyond the largest names. They also make a compelling case for international diversification, noting that from 2000 to 2009, the S&P 500 delivered a negative total return while international developed markets gained approximately 19%.
Their bottom line: a thoughtful mix of U.S. and international equities, blending passive exposure with active strategies, offers the best path toward durable, long-term wealth creation.
We're grateful to Wealth Management for including our team's perspective alongside other industry leaders in this annual publication. It reflects our ongoing commitment to delivering thoughtful, research-driven investment strategies for our clients.
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