Investors are constantly searching for the perfect portfolio. Although it may be elusive, there are common principles that can allow all of us to get closer to it. We speak…
Tag: Academic Investment Research
Revisiting The Five-Factor Model
Nearly 30 years ago, Eugene Fama and Kenneth French introduced their three-factor model, augmenting the capital asset pricing model (CAPM) with small minus big (SMB) and high minus low (HML).…
A Harvard Professor Takes On Private Equity
A highly-regarded professor at Harvard Business school is claiming that he’s come up with a better alternative to private equity by recreating their returns through an array of publicly traded…
Generating Alpha From Hidden Earnings Data
A new research paper co-authored by professors at the MIT Sloan School of Management and Harvard Business School purports that even the most expert analysts overlook a number of off-the-income-statement…
Lu Zhang On The Evolution of Asset Pricing Models And His First Principles Approach to Improve Them
Asset pricing models have evolved significantly over the past several decades. From the Capital Asset Pricing Model to Fama and French’s 3 Factor Model to their more recent 5 and…