Ben Graham Cigar Butt Hunting–Size Matters

/Ben Graham Cigar Butt Hunting–Size Matters

Ben Graham Cigar Butt Hunting–Size Matters

By | 2017-08-18T17:09:28+00:00 December 5th, 2013|Research Insights|3 Comments

Interesting paper:


The study demonstrates how size controls can alter the outlook of an investment strategy. The Ben Graham net current asset value rule provides excellent excess returns according to traditional performance measures. Size-adjustment procedures, however, reveal that its size­-adjusted excess return is approximately zero.

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Wes Gray
After serving as a Captain in the United States Marine Corps, Dr. Gray earned a PhD, and worked as a finance professor at Drexel University. Dr. Gray’s interest in bridging the research gap between academia and industry led him to found Alpha Architect, an asset management that delivers affordable active exposures for tax-sensitive investors. Dr. Gray has published four books and a number of academic articles. Wes is a regular contributor to multiple industry outlets, to include the following: Wall Street Journal, Forbes,, and the CFA Institute. Dr. Gray earned an MBA and a PhD in finance from the University of Chicago and graduated magna cum laude with a BS from The Wharton School of the University of Pennsylvania.


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