Basilico and Johnsen

Comparing past and present inflation rates can be tricky

By |March 20th, 2023|Inflation Investing, Research Insights, Basilico and Johnsen, Academic Research Insight|

The objective of this article is to build better estimates of CPI headline and core inflation values so inflation comparisons over time are more reliable.  The run-up in inflation we are currently experiencing is difficult to contextualize because it is inconsistent with past practices, weights on expenditures have changed, and the treatment of housing costs.

Does International Diversification Work?

By |February 28th, 2023|Research Insights, Factor Investing, Basilico and Johnsen, Academic Research Insight, Tactical Asset Allocation Research|

In this article, the authors examine the research on the benefits of international diversification. Some argue that because equity markets generally crash simultaneously, there are no benefits to having equity diversification. The evidence from this paper rejects this hypothesis.

Bigger is Not Always Better in Asset Management

By |December 19th, 2022|Research Insights, Factor Investing, Basilico and Johnsen, Academic Research Insight, Active and Passive Investing|

Pastor, Stambaugh, and Taylor (2015) and Zhu (2018) provide significant evidence of decreasing returns to scale (DRS) at both the fund and industry levels. The authors examine the robustness of their inferences after Adams, Hayunga, and Mansi (2021) critique the above two studies.

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