…said, financial advisors will “use the language of factors to create bespoke portfolios” and individuals will be more “outcome-oriented with factors—growing their nest egg with value and momentum, or being…
Search Results for: factor
Ken French: We Can’t Tell if Value Premium Has Disappeared
In a paper published last month, the team of Eugene Fama and Ken French—credited with identifying the value premium back in 1992—analyzed how the value factor has fared over the…
Some Thoughts on the Struggles of Factor Investing in the Past Decade
…Against Beta AQR-BAB 9.68% 8.09% source: Portfolio Visualizer, Factor Statistics The struggles of factor investing, particularly value, over a long period of time has led many to question whether factor…
The Elusive Definition of Risk
…decline. For the second point of failure (abandoning a strategy when it underperforms), a base rate strategy can also be helpful. With factor strategies, looking at the percentage of time…
Learn from Peter Lynch but Don’t Think You Can Replicate Him
…So depending on the historical earnings growth rate, companies were analyzed differently through various fundamental factors. PEG Ratio: A Shortcut to GARP stocks Not only does the earnings growth…
A Proven Strategy for Disciplined Growth Stock Investing
…be improved? Mohanram, smartly, developed a grading system, called the GSCORE, which effectively scores stocks based on profitability, cash flows factors and accounting policies. The GSCORE is an eight-point scale…
High-Quality Stocks Won in a Tricky Year for Factor Investing
Although 2019 marked a year-long rally for the stock market, a recent Barron’s article notes that, “underneath the broad optimism,” various factor groups moved in and out of favor along…
Morningstar Study: Which Investment Factors Work?
…“because these factors cannot be purchased. They come attached to stocks, which in turn offer exposures to other factors.” Here are highlights of the findings in order of performance: Volatility:…
Ang Warns About Value
BlackRock’s managing director Andrew Ang is urging investors to be cautious in how they return to the long-underperforming value factor, according to a recent article in Institutional Investor. Although several…
Lessons From Our Most Read Five Questions Interviews
…an hour and half on the phone with me and we published the interview in two parts. We talked about a variety of topics including factor investing, behavioral finance, and…