Wesley R. Gray, Ph.D.

//Wesley R. Gray, Ph.D.

About Wesley R. Gray, Ph.D.

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, ETF.com, 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.

Quant Geek Weekend Finance Homework

By | 2017-08-18T16:58:40+00:00 March 15th, 2015|Uncategorized|

Recently Discovered Research You Might Have Missed: Manager Selection (Scott Stewart) Measuring the Size Effect with Capitalization-based ETFs (CXO Advisory) Asymmetric Reporting (Armstrong, Taylor and Verrecchia) The Piotroski F Score in the Australian Market: Performance & Fundamental [...]

Distribution Economics: Understanding Wall Street’s Conflict of Interest Problem

By | 2017-08-18T17:06:44+00:00 March 11th, 2015|Key Research, $SPY, $wfc, $jpm, $bac, $c, $usb, $gs|

The simple matter is that most clients know how to buy groceries, but few know how to purchase financial products. In the murky world of financial services, clients may be buying products for the first time. More importantly, this purchase is the driver of their long-term financial security. Years of hard work, thrift, and responsible life choices, are baked into each and every retirement portfolio that a banker must now serve. In short, the stakes are too high and the cards are stacked too favorably towards one party. Fiduciary responsibility matters in financial services more than in any other product category outside of urgent medical care. Shouldn't this fiduciary have your best interests at heart? Just as you don't want your doctor to receive kickbacks from Pfizer for overdosing you on Oxycodone, why would you want your financial advisor--or their institution--to receive kickbacks for overdosing you on inefficient, overpriced, investment product that probably won't help you achieve your investment goals? Moral of the story: Ask your banker, or bank-affiliated advisor these questions. If you get answers that sound like the ones above, it might be time to buy a car or an airline ticket, because traveling via railroad is a thing of the past.

Why The Low-Volatility Anomaly Exists

By | 2017-08-18T16:52:07+00:00 March 5th, 2015|Research Insights, Low Volatility Investing, $SPY|

Benchmarks as Limits to Arbitrage: Understanding the Low-Volatility Anomaly Baker, Bradley and Wurgler A version of the paper can be found here. Want a summary of academic papers with alpha? Check out our Academic Research Recap Category. [...]

Timing Value and Momentum with Valuation-Spreads

By | 2017-08-18T16:54:55+00:00 March 4th, 2015|Value Investing Research, Momentum Investing Research, Tactical Asset Allocation Research, $SPY, $mtum, $vlue|

We were recently passed along an article suggesting that valuation spreads, or the spread in a valuation metric across the most expensive and least expensive stocks, matters for timing investments. We take this concept one step further [...]

Buffett and Hedge Funds Share a Trait: No Alpha

By | 2017-08-18T17:08:55+00:00 March 3rd, 2015|Guest Posts, Tactical Asset Allocation Research, $SPY, $brk-a|

Aaron Seager, a portfolio manager at Arbor Hill Advisors, offered up the following charts showing alpha over the past 15 years for Warren Buffett and an index of Hedge Funds. Humbling to say the least... Warren [...]

Did Warren Buffett Move the Goalposts in the Latest Letter?

By | 2017-08-18T17:06:52+00:00 February 28th, 2015|$SPY, $vlue, $brk-a|

It appears even the Oracle of Omaha may be vulnerable to short term performance pressures. The Berkshire report came out today, and it has magically changed formats to deemphasize the fact the book value per share [...]