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.

Behavioral Finance Must See: Thaler’s 2016 Presidential Address

By | 2017-08-18T17:09:31+00:00 July 1st, 2016|Behavioral Finance|

This is a great video to watch over the holiday weekend. Prof. Thaler does a great job walking through behavioral finance/economics. He also has a paper on related topics: Behavioral Economics: Past, Present and Future [...]

Can You Spot the Closet-Indexer? Introducing Visual Active Share

By | 2017-08-18T17:08:20+00:00 June 23rd, 2016|Robo Advisor, Tool Updates|

Readers, We're working on some internal tools to help investors make more informed decisions. The primary challenge that investors face is understanding what they are actually buying versus what they are being sold. Active share [...]

Want to Know the Secret to Inefficient Prices? Lazy Prices.

By | 2017-08-18T16:52:52+00:00 June 13th, 2016|Research Insights, Behavioral Finance|

How do you handle repetitive tasks? If you're like most people, you work through a task in a variety of ways, find the most efficient approach, and then stick to that workflow. Consider email address autofill, automatic [...]

Want to spot a true Value Investor? Look for horrible recent performance

By | 2017-08-18T16:52:50+00:00 June 1st, 2016|Value Investing Research|

Harry Houdini is perhaps the best-known magician of all time, gaining notoriety in the early 20th century through his daring escape acts. Houdini escaped from straight jackets while suspended from chains, fought his way out of [...]

Behavioral Finance Strikes Again: Contrast Effects in Financial Markets

By | 2017-08-18T17:09:30+00:00 May 19th, 2016|Research Insights, Behavioral Finance|

At this point, even hard core efficient market fans will likely admit that behavior can influence investment decisions. Humans aren't robots. However, just because some investors exhibit bad behavior that doesn't mean they can influence prices. As the story [...]

A Stunning New Finding: Return Seasonalities are Everywhere

By | 2017-08-18T17:11:15+00:00 May 18th, 2016|Research Insights|

We've discussed return seasonalities in the past, especially as they pertain to our approach to momentum. Turns out seasonality effects aren't confined to momentum -- they are literally everywhere and they are incredibly strong. This paper [...]

Not so Simple: Valuations and Low Volatility Strategies

By | 2017-08-18T16:59:46+00:00 May 17th, 2016|Key Research, $SPLV, Low Volatility Investing|

Low volatility funds are everywhere. The reasons for their proliferation are clear: Who wouldn't want to own something with the label "low volatility" and Recent performance has been great. Open the AUM floodgates! But perhaps [...]

Replicating Private Equity Returns with Small Value Stocks…3min video

By | 2017-08-18T16:57:57+00:00 May 16th, 2016|Value Investing Research|

We discussed private equity replication with public equities here and here. Erik Stafford just won the "honorable mention" award from AQR for his work on the subject. Click the image below to hear Erik's 3 minute [...]

How Testosterone and Stress Affect Financial Decision-Making

By | 2017-08-18T17:03:31+00:00 May 3rd, 2016|Behavioral Finance|

Decision Making, Financial Risk Aversion and Behavioral Biases: The Role of Testosterone and Stress Nofsinger, Patterson and Daigler A version of the paper can be found here Want a summary of academic papers with alpha? Check [...]

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Our summertime introductory finance education course

By | 2017-08-18T16:59:36+00:00 May 2nd, 2016|Investor Education, Introduction Course|

Well, it's my birthday today, so I'm getting older, but I'm in high spirits because younger people are so excited to learn new things. Over the past week, a few younger blog readers (and even some [...]

How the day of the week affects stock market anomalies

By | 2017-08-18T17:03:30+00:00 April 25th, 2016|Research Insights|

Day of the Week and the Cross-Section of Returns Justin Birru 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: This [...]

The Moving Average Research King: Valeriy Zakamulin

By | 2017-08-18T16:55:25+00:00 April 22nd, 2016|Tactical Asset Allocation Research|

Some weekend reading for trend-followers who want to question their beliefs. Valeriy Zakamulin is an animal when it comes to generating research on moving averages. We've done a lot of the same work, but we're [...]

Computers Still Beat Humans? We Ask, Will Grove Responds.

By | 2017-08-18T17:07:56+00:00 April 21st, 2016|Behavioral Finance|

Overconfidence is the death of everything in investing. I suffer from the problem just like everyone else because last time I checked...I'm human. As humans, we need to face the reality of overconfidence. Overconfidence is like [...]

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