The rating agency Morningstar has spruced up its rating system, which “hasn’t proved to be very predictive for future performance and volatility” and has “lost its luster because of the…
Day: December 11, 2019
Here’s How Active Managers Squander Alpha
New research shows that active managers do in fact generate alpha, but have a hard time keeping it because they hold positions too long. This according to an article in…
The Danger of Overscrutinizing Out of Favor Investment Metrics
By Jack Forehand (@practicalquant) — No investing factor has been maligned more than the Price/Book in recent years. In a period where value in general has performed very poorly, the Price/Book…