Are ETFs Really Crushing Mutual Funds?
Peter Thiel has this quote to open his book Zero to One: Every moment in business happens only once. The next Bill Gates will not [...]
Fund Management: The Poor Beat the Rich
Family Descent as a Signal of Managerial Quality: Evidence from Mutual Funds Oleg Chuprinin and Denis Sosyura Review of Financial Studies, 2018 A version of this paper [...]
Buyer Beware: The Reality of Tax-Loss Harvesting Benefits
Executive Summary Tax loss harvesting is widely promoted, but we think the benefits are generally misunderstood and often overstated.[ref]a recent paper highlighted by Wes on [...]
Only Hedge Fund Winners in Tough Times Show Skill
Only Winners in Tough Times Repeat: Hedge Fund Performance Persistence over Different Market Conditions Zheng Sun, Ashley W. Wang, and Lu Zheng Journal of Financial [...]
Compound Your Knowledge Episode 9: Investor Confidence & Issues with Factor Investing
In this week's post, we discuss two posts. The first post, written by Elisabetta, examines a new method attempting to directly measure aggregate investor overconfidence. [...]
Factor Investing is Simple, But Not Easy (Video)
We are creating a series of long-form educational videos that present materials often covered in our white papers. The intent of these videos is make [...]
The Factors that Plague Factor Investing
For those interested in the literature on factor-based investing, a new paper by Robert Arnott, Campbell Harvey, Vitali Kalesnik and Juhani Linnainmaa, “Alice’s Adventures in [...]
Compound Your Knowledge Episode 8: Cash Conversion Cycle, Uncertainty, and Distracted Investors
In this week's post, I discuss three papers. The first examines a new factor, the Cash Conversion Cycle--while most are discounting factors in the new [...]
Aggregate Investor Confidence in the Stock Market
Aggregate Investor Confidence in the Stock Market Christoph Meier Journal of Behavioral Finance, 2018 A version of this paper can be found here Want to read [...]
Investment Strategy in an Uncertain World
In 1921, University of Chicago Professor Frank Knight wrote the classic book “Risk, Uncertainty, and Profit.” An article from the Library of Economics and Liberty [...]
A Remarkable New Factor: The Cash Conversion Cycle
The Cash Conversion Cycle Spread Baolian WangJFE, forthcoming.A version of this paper can be found here.Old discussions here and here. h.t. M. Mauboussin What are the [...]
Compound Your Knowledge Episode 7: Momentum & Short Sellers
In today's video, we examine three articles from last week. The first article, written by Larry Swedroe, examines the Momentum of News. The second article, [...]
Distracted Institutional Investors
Distracted Institutional Investors Daniel Schmidt Journal of Financial and Quantitative Analysis, forthcoming A version of this paper can be found here Want to read our summaries [...]
The Momentum of News
Since the development of the capital asset pricing model (CAPM) in the 1960s, hundreds of anomalies (what John Cochrane famously called a “zoo of new [...]
Momentum Factor Investing in Russia
Momentum Factor Investing in 19th Century Imperial Russia William Goetzmann and Siman HuangJFE, forthcoming.A version of this paper can be found here. What are the research [...]
DIY Asset Allocation Weights: April 2019
Do-It-Yourself tactical asset allocation weights for the Robust Asset Allocation Index are posted here. Create a free account here if you want to access the site directly. [...]
Short Selling + Insider Selling = Bad News
Do Short Sellers Trade on Private Information or False Information? Amiyatosh Purnanandam and H. Nejat Seyhun Journal of Financial and Quantitative Analysis A version of [...]
Book Review: Your Complete Guide to a Successful and Secure Retirement
If you are looking for an applied framework for tackling the topic of financial planning, you should read Your Complete Guide to a Successful and [...]
How to Pass the CFA Level 1 Exam
I recently received a question from Steve Sivak of Innovate Wealth: How do I pass the CFA Level 1 Exam? When I sat down to type my response, [...]
Why the Size Premium Should Persist
As the chief research officer for Buckingham Strategic Wealth and The BAM Alliance, I’m often asked, after any asset class or factor experiences a period [...]