A recent GMO client letter urges investors to “stop obsessing over their portfolios and pay more attention to factors beyond their holdings that are more difficult to measure” or risk…
What Quant Value Models Can and Can't Do for You
By Justin Carbonneau (@jjcarbonneau) – Two weeks ago I wrote an article, Differences in Value, where I outlined the various criteria (i.e. price-to-sales, price-to-book, and enterprise value-to-EBIT) used in the…
Do Robots Offer an Edge in the Investing Arms Race?
Quantitative traders are hoping that computer-driven strategies will be able to “figure out this crazy stock market,” according to a recent article in Bloomberg. “Machine-learning takes quant investing to the…
Great Investors are Philosophers
History’s great investors all have one thing in common: “They are investment philosophers,” according to an article in CFA Institute. The “typical” fund manager “talks their book,” the article argues,…
Investors: Consider revenue-weighted ETFs
An article in CityWire suggests that investors should “forget the switch from active to passive” and consider investing in revenue-weighted indices. Citing Schroders research, the article reports that over the…
Vanguard Has Figured out How to Avoid Taxes on Mutual Funds
An article in Bloomberg reports that Vanguard Group Inc. has figured out how to avoid taxes on its mutual funds. According to the article, a review of Vanguard financial statements…
Trying to Put the Struggles of Value Investing in Context
By Jack Forehand, CFA (@practicalquant) — Value stocks have struggled for a long time now. Although the degree of underperformance can vary significantly based on the metric you use and…
The U.S. Expansion is Still Going
In a recent Bloomberg article, columnist Nir Kaissar suggests that the current extended period of economic growth—albeit raising plenty of questions among some market-watchers—may have a ways to go. Kaissar…
How to Fight These Four Behavioral Biases
The biggest investing risks are born of human decision-making, according to a recent CFA Institute article that outlines behavioral biases and how to combat them. “Biology encourages our brains to…
The Essential Guide to Pitching an Investment
In an interview with Barron’s last year, veteran portfolio manager and Columbia Business School adjunct professor Paul Sonkin discusses his 2017 book Pitch the Perfect Investment: The Essential Guide to…