Discipline is Key to Investing Success

According to research conducted by AQR Capital Management, the success of superstar investors such as Warren Buffett and George Soros comes down to a few key strategies. This according to an article in CNBC.com. In a recent podcast, AQR co-founder David Kabiller said, “One big takeaway from Warren Buffett is: Discipline is really important to being a long-term successful investor,” along with patience and conviction in one’s business strategies. AQR’s research revealed that the Berkshire… Read More

Momentum Investing is Back, At Least for Now

The strategy of buying whatever sector has had the greatest price or earnings gains in the past twelve months seems to have come back in fashion, according to a recent article in Investment News. The article cites a recent white paper by AQR that addressed momentum investment results and reported that “trend-following has delivered strong positive returns and realized a low correlation to traditional assets classes for more than a century.” At the Morningstar ETF… Read More

In Factor Investing, Integration is a Plus

Portfolio diversification is a known strategy for minimizing risk, but these efforts can be thwarted if the diversified securities react in a similar way to market conditions. Factor investing is designed to reduce this risk by adjusting holdings based on specific attributes, and returns have been shown to increase if several factors are combined. A recent article in Chief Investment Officer magazine asserts that how factors are combined also makes a difference in investment outcomes.… Read More

AQR Tests Market Timing Techniques, Helping to Boost Long Term Returns

  A recent article by Cliff Asness and colleagues from AQR Capital Management challenges the academic finance recommendation to avoid attempts to time the market. “Sinning a little,” Asness and colleagues suggest, can boost returns.  Among other things, they suggested trimming exposure to stocks in October 2015, as the article went to print, by holding more cash. The article uses two core factors – valuation, measured by the cyclically adjusted PE (CAPE) factor made known… Read More