Can smart rebalancing improve factor portfolios?
By Tommi Johnsen, PhD|September 3rd, 2024|Tommi Johnsen, Transaction Costs, Research Insights, Factor Investing, Academic Research Insight, Value Investing Research, Momentum Investing Research|
This paper provides new evidence on the efficacy of prioritizing transactions so as to focus portfolio turnover on the trades that offer the strongest signals and hence the highest potential performance impact.
The After-Fee Performance of Private Debt
By Larry Swedroe|August 30th, 2024|Research Insights, Larry Swedroe, Fixed Income, Other Insights|
Private debt funds are a rapidly growing segment of the [...]
From Man vs. Machine to Man + Machine: The Art and AI of Stock Analyses
By Elisabetta Basilico, PhD, CFA|August 26th, 2024|Elisabetta Basilico, Research Insights, Academic Research Insight, AI and Machine Learning, Other Insights|
An AI analyst trained to digest corporate disclosures, industry trends, and macroeconomic indicators surpasses most analysts in stock return predictions. AI wins when information is transparent but voluminous. Humans provide significant incremental value in “Man + Machine,” which also substantially reduces extreme errors.
Evergreen Private Equity Funds Attracting Assets
By Larry Swedroe|August 23rd, 2024|Private Equity, Research Insights, Larry Swedroe, Other Insights|
Evergreen funds are a relatively new concept in the private equity (PE) world compared to traditional closed-end funds. They were introduced to address the negatives of the traditional way to invest in private equity which had been in the form of partnerships.
Fixing the poor performance of the book-to-market ratio
By Tommi Johnsen, PhD|August 19th, 2024|Tommi Johnsen, Factor Investing, Research Insights, Academic Research Insight, Other Insights, Value Investing Research|
The authors effectively argue the case for intrinsic value and DCF based approaches to building Value factor strategies. The traditional value measures, especially the book-to-market ratio, are described as ineffective in today's market environment.
The Effect of ESG Strategies on Global Equity Returns
By Larry Swedroe|August 16th, 2024|ESG, Larry Swedroe, Research Insights, Other Insights|
To determine the impact of sustainable investment strategies on equity returns, Romulo Alves, Philipp Krueger, and Mathijs van Dijk analyzed the relationship between ESG ratings and global stock returns. They found very little evidence that ESG ratings were related to global stock returns over the two-decade period.
Global Factor Performance: August 2024
By Wesley Gray, PhD|August 13th, 2024|Index Updates, Research Insights, Factor Investing, Tool Updates, Tactical Asset Allocation Research|
The following factor performance modules have been updated on our Index website.
High school financial education courses in the United States
By Elisabetta Basilico, PhD, CFA|August 12th, 2024|Elisabetta Basilico, Financial Planning, Research Insights, Academic Research Insight, Other Insights, Behavioral Finance|
This article provides detailed insights into how high school financial education policies are implemented at the local level.
Overvalued or New Paradigm?
By Larry Swedroe|August 9th, 2024|Predicting Market Returns, Larry Swedroe, Research Insights, Guest Posts, AI and Machine Learning, Other Insights, Behavioral Finance|
Without question the topic of greatest debate among investors, including investment professionals, and financial economists, is whether or not the market, and the technology sector in particular, is overvalued. There are two very strong conflicting views regarding not only the current valuation of technology stocks, but also the valuation of the entire asset class of large-cap growth stocks. One side, I’ll call the “new paradigm” or “it’s different this time” school. The other side, I’ll call “the been there, done that” school. Its theme is those that don’t learn from the past are doomed to repeat the same mistakes. No two sides could have more different viewpoints. To understand each side, let’s imagine a dialogue between the two schools.
Factors and Taxes
By Tommi Johnsen, PhD|August 5th, 2024|Tommi Johnsen, Factor Investing, Research Insights, Guest Posts, Academic Research Insight, Tax Efficient Investing|
As a result of the trading required to capture the [...]