A recent Barron’s article debunks the argument that sustainable, or ESG, investing leads to lower returns for investors. “When critics beat up on ESG, they are often right—but the problem…
Small Cap Premium at Historic High
A recent article in Indexology Blog reports that, for the first half of 2018, small caps are outperforming large caps by the largest margin in eight years. In the past four…
The Dow's Dilemma
In June, the Dow Jones Industrial Average ejected General Electric Co. in what a recent Wall Street Journal article describes as an “effort to adapt a 19th-century index to a 21st-century economy.”…
Trouble for Quant Hedge Funds
The rise in market volatility has resulted in poor results for many quant funds, according to a recent Bloomberg article that says, “They were caught flat-footed in February when markets turned…
Wall Street Looks to Superforecasting
The importance of accurate forecasting is leading some firms to using so-called superforecasting—a statistical approach in which “large numbers of estimates are averaged to find the most likely answer.” This…
Morningstar on Investment Truths
A recent article in Morningstar recounts insights from AQR’s Cliff Asness on the following two questions: Can current stock valuations help predict future returns? “Probably yes,” writes Asness, “but not…
If You Take Risk, Get Compensated for It
By Jack Forehand (@practicalquant) — Investing can seem incredibly complex at times. With the rise of complicated computer-based strategies, more and more factors being discovered every day, and even more advanced…
In a Trade War, Investors Hide in Small-Caps
Small-cap stocks, which tend be “insulated from overseas turmoil” have been performing well against the backdrop of a looming trade war with China. This according to a recent article in…
Economist Says U.S. Recession Possible in 12 Months
David Rosenberg, chief economist and strategist at Gluskin Sheff & Associates Inc., said that January’s high in the S&P 500 “will prove to be the peak of the bull market…
Hedge Funds Share Best Ideas Before Dumping Stocks
A recent article in Bloomberg discusses the tendency for hedge funds to pitch their best investment ideas at investor conferences, only to then “sell pitched stocks after the conferences to…