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.

Oil Stocks: A Real-Time Case Study in Value Investing

By | 2017-08-18T16:59:44+00:00 December 11th, 2014|Research Insights, Value Investing Research, Uncategorized|

I just took a snapshot of the front page of Yahoo Finance, CNBC.com, and Bloomberg.com:   Bloomberg.com @ 1725 EST CNBC.com @ 1725 EST Finance.Yahoo.com @ 1725 EST WHO [...]

Uncle Sam: The Highest Paid Hedge Fund Manager

By | 2017-08-18T16:54:04+00:00 December 9th, 2014|Investor Education|

Uncle Sam and affiliates have the greatest fee structure in the world: 23.8% to 43.40%+ carried interest, or a "performance" fee on all positive performance: Congrats on your market gains...pay up... No hurdle rates: Inflation [...]

Avoid the Experts: A Lesson in CFO Overconfidence

By | 2017-08-18T17:09:51+00:00 December 5th, 2014|Research Insights, Behavioral Finance|

Managerial Miscalibration Ben-David, Graham and Harvey A version of the paper can be found here. Want a summary of academic papers with alpha? Check out our Academic Research Recap Category. Abstract: Using a unique 10-year panel that [...]

Understanding How ETFs Trade in the Secondary Market

By | 2017-08-18T16:54:02+00:00 December 3rd, 2014|Key Research, Investor Education, Uncategorized|

An ETF's liquidity has everything to do with the underlying liquidity of the positions the ETF holds. This has a few implications: Pay attention to the liquidity on the holdings of your ETF--this will explain the spreads in the secondary market; Trade ETFs when the underlyings are liquid--avoid trading ETFs at the open or when overall market volume is lackluster; Avoid huge market orders, and stick to limit orders; Moreover, for huge trades, communicate directly with the market maker or your ETF trading desk.

The Robust Asset Allocation (RAA) Index

By | 2017-08-18T16:55:15+00:00 December 2nd, 2014|Research Insights, Key Research, Introduction Course, Tactical Asset Allocation Research|

Robust asset allocation solutions should be relatively simple, minimize complexity, and be robust across different market regimes. Simultaneous to these requirements, the solution must be affordable, liquid, simple, tax-efficient, and transparent, otherwise, many of the benefits of the solution will flow to the croupiers and Uncle Sam. We recommend that investors explore our robust asset allocation framework and go for the do-it-yourself solution. You'll be paying yourself 1%+ a year via saved RIA fees. Is this the only solution? No. But any solution must be robust, simple, tax-manageable, and low-cost. This is our best effort to develop a simple model. Developing a complicated model is easy; simple is difficult.

An Educational Piece on the Appraisal Ratio…

By | 2017-08-18T17:10:38+00:00 November 25th, 2014|Research Insights, Investor Education|

Peter Hecht, Ph.D., a fellow Chicago Finance PhD and vice president of Evanston Capital Management, recently published an interesting white paper: How to evaluate hedge funds or any new investment: Alphas, Sharpe ratios, and the [...]

ETF Market Making–Very Cool Insider Insights

By | 2017-08-18T17:05:26+00:00 November 20th, 2014|Research Insights, Interviews, Investor Education|

Have you ever wondered how ETF trading actually works? Most people think ETFs trade "just like stocks." These people are wrong. While there are similarities between individual stock issues and ETF issues, there are key differences in [...]