…horizons shrinking.” He argues that bubbles are more about investors “rationally moving toward short-term trading to capture momentum that had been feeding on itself” rather than an irrational approach to…
Search Results for: momentum
Indexing Beats Smart-Beta Track Record
Many smart-beta funds– which develop portfolios focusing on various factors such as low volatility, value, or momentum– have underperformed the market, especially after accounting for fees and expenses. This according…
Hulbert Says Momentum Investing Lives
…the momentum strategy has permanently stopped working.” Another factor, writes Hulbert, is that a momentum strategy would “stop working only if its underlying causes disappeared.” One such cause, he notes,…
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. …
Is It Time for Active Managers to Shine?
“Passive funds tend to attract more inflows after the underlying indexes have performed well, so they’re driven by momentum rather than by analysis of company valuations and fundamentals,” according to…
Morningstar: Funds Flow and Liquidity Affect Performance
…factors in fund performance. “It’s pretty rare,” he argues, “that these are the most important factors in explaining performance; rather, they are headwinds.” For example, a small-cap momentum strategy, writes…
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…
European Stocks Look Appealing Compared to U.S. Shares
…fund managers predict positive economic momentum over the next year, while only 32% see downside risk to consensus earnings estimates, a two-year low.” Still, say equity strategists at Barclays Bank,…
Asness versus Arnott: The Factor Timing Debate Continues
…in Institutional Investor. Asness’ issue, the article says, is with Arnott’s contention that risk premia factors such as value, momentum, growth and volatility have become “overvalued as a result of…
Simple is Smart in Smart-Beta Investing
…least 10.9 percent. Momentum: Returns were volatile but, over time, “accumulated impressively.” The article noted that, “across 23 countries, the effect proved robust, and has strengthened slightly since it was…