…(annual dividend) and its buyback yield (annual rate of stock buybacks);” Formulaic weighting of the portfolio, “which allocates to stocks based on a ranking of their factor profiles.” The article…
Search Results for: factor
Investors Getting More Comfortable with Factor Investing
…more than 300 institutional and wholesale factor investors. “However,” the article continues, “the Invesco study highlighted that nearly half of the investors adopted factor investing for the first in 2015…
Five Questions: Multi-Factor Investing with Liqian Ren
…factor timing: fundamental-based factor timing or exogenous information-based factor timing. Fundamental-based factor timing relies on fundamental measures such as value, momentum, or quality of a factor. Factor momentum and factor…
Study Claims That the Momentum Factor Doesn't Work
A new study from Dimensional Fund Advisors concludes that fund managers “can’t find a way to profit” from the momentum factor, according to an article in Institutional Investor. The study,…
Factor Timing: Sin Less Than a Little
…market, timing factors using just valuation must contend with contrarian factor timing being already implicitly (but strongly) present in the value factor itself. Despite the rhetoric calling factor timing simple…
Most Read on Validea's Guru Investor
…Pitfalls of Using EV/EBITDA in Valuations [3] Hulbert: Fund Performance is Largely Luck-Driven [4] Pure-Factor ETFs Poised to Shine in Market Downturn ——- Photo: Copyright: arcady31 / 123RF Stock Photo…
Pure-Factor ETFs Poised to Shine in Market Downturn
An article in Bloomberg argues that pure factor ETFs, those that “stick closer to the academic version of factors,” have the potential to shine in a market downturn. “The multiyear…
Five Questions: Behavior in Investing with Dr. Daniel Crosby
…invest in active or passive funds or whether value or momentum is a better investing factor, but in doing that we often lose sight of the thing that studies have…
The Benefits of Base Rates
…uses for base rates we have found in our asset management business. There is strong evidence that factor-based portfolios can beat the market over time, but the ride to get…
When Hypothetical Becomes Real
…happens with all types of investment strategies, but it is particularly common in factor investing. Whether it be value or momentum or some of the secondary factors like quality, there…