A Framework to Evaluate Value Strategies
A few months ago, I wrote about the mechanics of value investing and the many decisions that go into building value portfolios. Many investors believe that all value-based strategies will produce a similar performance. But in reality, the many portfolio construction decisions that value managers make...
Momentum Investing - the What, the Why, the How and the Risks
The recent outperformance of momentum gives us an opportunity to talk about this style of investing, the theories behind why momentum has the potential to work, how momentum can be measured, the risks of momentum (and there are plenty), and how momentum can be combined with other fundamental factors to aid in stock selection.
Factor Timing: Sin Less Than a Little
There is perhaps no issue that is the subject of more debate in the factor investing community than factor timing. We are all trained to buy low and sell high, and it is tempting to conclude that we can do the same thing with factors. But in reality, it's not so simple.
The Inexact Science of Market Valuation
Headline grabbing takes the market's valuation take an issue that can be very nuanced and try to make it simple, and as a result, the conclusions that are reached are almost always flawed. Trying to use the market’s valuation to predict short-term outcomes misses two important points that should govern any analysis of market valuation.