The Returns to Value Strategies When Valuation Spreads Are Wide (Deep Value)
The academic research has generally found valuations, such as the earnings yield (E/P) (or the CAPE 10 earnings yield) and valuation spreads, have predictive value [...]
Book Review — Market Timing with Moving Averages
Trend-following is something I've struggled with for years -- always felt like voodoo magic and data-mining. That said, I finally came around to appreciating the [...]
Cybersecurity Series: Penetration Testing for Financial Advisors
Cybersecurity is much like boxing, combat, or discussing finances with your spouse: You can train all you want, but you never really know your true [...]
Academic Research Insight: Industry Herding by Short Sellers Signals that Conditions are Changing
Do short sellers exploit industry information? Zsuzsa R. Huszár, Ruth S.K. Tan, Weina Zhang Journal of Empirical Finance A version of this paper can be [...]
Podcast: The Future of ETFs and ETF Market Making (Wes and Ryan)
Here is a link to our podcast on Behind the Markets. Ryan Kirlin and Wes speak with Reggie Browne, Senior Managing Director of the ETF Group [...]
Podcast: Founding Alpha Architect (Wes)
Here is a link to our recent podcast on Behind the Uniform. I'm so humbled and honored to have Wesley Gray on the show today, talking [...]
ESOP Attorney — How to Hire One and Why It Matters
The sequential process by which ESOP advisory teams are assembled by business owners requires that they get it right–from the start. An ESOP attorney is the linchpin in that process. Here is what you need to know.
Academic Research Insight: Beware of the Surprise Departure of Independent Directors!
Do Independent Director Departures Predict Future Bad Events? Rüdiger Fahlenbrach, Angie Low, and René M. Stulz The Review of Financial Studies A version of this [...]
Momentum and Market Anomalies
Momentum is the tendency for assets that have performed well (poorly) in the recent past to continue to perform well (poorly) in the future, at [...]
Historical Finance Fight: Ben Graham versus H.M. Gartley
Reading really old research is humbling. https://archive.org/ is an awesome place to start. One quickly recognizes that market participants were very savvy way back in the [...]
Academic Research Insight: Diverisification is Not Always a Free Lunch
What Free Lunch? The Costs of Overdiversification Shawn McKay, Robert Shapiro, Ric Thomas A version of this paper can be found here Want to read our [...]
Brandon Koepke: From Disney to Amazon to Wes’ Garage. Ouch.
We wanted to formally welcome the newest addition to the Alpha Architect team, Brandon Koepke ("kep-key"), who joins us as a Computer Systems Analyst. [...]
Everyone, Even a Passive Vanguard Investor, is a Factor Investor
Much has been made of Factor Investing, and even Vanguard is launching a suite of actively-managed factor ETFs. But even now, with Vanguard offering factor [...]
Myth Busting: Stocks Correlations and Active Investment Opportunities
Many investors, investment professionals, and pundits make comments regarding the relationship between stock correlations and opportunities for active stock pickers. For example, here is a [...]
Do factor portfolios survive transaction costs?
Factor investing, and the associated intellectual battles, have raged for decades in academic finance journals. However, now that factor investing has gone mainstream via ETFs, [...]
Academic Research Insight: How Women Affect Corporate Decision-Making
Shaped by their daughters: Executives, female socialization, and corporate social responsibility Henrik Cronqvist, Frank Yu A version of this paper can be found here Want to [...]
Podcast: Alternative Manager Due Diligence (Wes)
Here is a link to our podcast on Behind the Markets. Wes and Jeremy speak with Andy Weisman of Windham Capital Management and Rich Wiggins from [...]
Academic Research Insight: Political Connections May Actually Increase SEC oversight
Do political connections help or hinder SEC oversight? Jonas Heese, Mozaffar Khan, Karthik Ramanna Journal of Accounting and Economics A version of this paper can be [...]
Richard Thaler: Misbehaving His Way to a Nobel Prize!
Unless you live under a rock, you've probably heard that Professor Richard Thaler earned the recent Nobel Prize. (The University of Chicago is on fire these [...]
Monetary Momentum
On most mainstream finance websites, a good chunk of the stories discuss the FED and where interest rates are going. Intuitively, this makes sense: The [...]