A recent article in Advisor Perspectives offers highlights of an interview with Robert Rodriguez, award-winning fund manager and former managing partner at Los-Angeles-based asset manager FPA. Here is a summary…
Why Return Skewness Offers Some Hope for Value Investors
By Jack Forehand, CFA (@practicalquant) It is no secret that value investing strategies have struggled for a long time now. The extended period of underperformance has tested the patience of…
Hedge Funds Struggling in the Insurance Game Present Value Play
When Third Point’s Daniel Loeb and Greenlight Capital’s David Einhorn took the plunge into what a recent Barron’s article describes as the “warm waters of the reinsurance business”, the article…
Negative Interest Rates Present a Threat
In response to former Fed Chairman Alan Greenspan’s reported comments that negative interest rates wouldn’t be “that big of a deal,” a recent Bloomberg article rebuts, “it’s wrong. Negative interest…
Cheap Stock-Hunting Back in Favor
Value stocks have underperformed growth “in all but one year,” but saw a shift last week. This according to a recent article in The Wall Street Journal. On Monday, September…
Value Investing: Improving the Odds
The yield curve may identify periods where the value premium is more attractive, according to research published by quant firm FactorResearch. The article presents findings from a study using data…
New GMO Research on Value's "Lost Decade"
A new study from the research firm Grantham Mayo Van Otterloo (GMO) shows that the erosion of the value premium over the last decade was due to “changes in relative…
Dalio: Central Banks May Not Be Able to Reverse Downturns
The billionaire founder of Bridgewater Associates believes that the ability of central banks to reverse an economic downturn is waning as the global economy enters “the late stages of the…
Michael Burry of The Big Short Sees Passive Investing Bubble
Michael Burry, whose bet against mortgage securities before the 2008 crisis was immortalized in the film “The Big Short” sees another contrarian opportunity in what he characterizes as a “bubble”…
Can Steven Schwarzman and Private Equity Beta Be Replicated by Quants?
Quant asset managers are increasingly replicating the performance of private equity in order to give investors access to the same beta for a fraction of the cost. This according to…