…currency of another country showing higher bond yields—as one factor that has led to increased interest in emerging markets. Other investors, however, are turning to developing countries because of “improving…
Search Results for: factor
Study Raises Questions About Factor Significance
…factors passed muster–value momentum, investment and quality—although to a lesser extent than previous studies show. “A lot depends on exactly how the factors are implemented,” the article says. …
Value Investors Must Accept Stretches of Underperformance
…investors, the article says. Both Israel and Watts argued that combining other factors with a value approach can “prevent investors from falling into value traps.” According to Research Affiliates’ John…
Rob Arnott Questions Use of the Smart Beta Strategies He Pioneered
…AQR Capital Management LLC and also an early designer of smart-beta strategies, challenges Arnott’s stance, the article says, arguing that valuations are not the only factor at play. …
Value Indexing: Don’t Chase Performance
…identify factors that are likely to offer better performance going forward. West explains that if factor returns occur mostly due to rising valuations, “that’s a dangerous thing to extrapolate forward….
Buffett Has Sold Large Portion of IBM Stock
…adopt cloud-related technologies and has had to play catch-up to the likes of Amazon.com Inc.” In discussing the move, Buffett identifies IBM’s “tough competitors” as a factor in the company’s…
Small Cap Stocks Losing Earnings Steam
…“fizzled.” “The main factor behind the recent weakness is earnings growth,” says Russolillo. He cites projections by the firm RBC Capital Markets showing that S&P 500 companies with larger global…
Factor Investing Can Keep Active Management Relevant
…the past several decades showing that certain factors can help securities outperform; market, low volatility, value, size, momentum, term and credit. “Studies show that factor exposure is responsible for the…
Ritholtz Says Stock-Picking is Still Alive if Not Kicking
…suggest that much of active investing performance is attributable to factor-based strategies (picking stocks based on things like market cap, profitability, value, etc.), but index investing offers a cheaper way…
Book Value - A Buffett Favorite, But Far From Perfect
…a popular factor, taking book value into consideration, but the effectiveness of this value factor has been fading recently. A prominent quantitative firm shows how share buybacks may be clouding…