Conviction, evidence, and accepting ignorance
Coaches teach us the fundamentals of some activity. If there was an “ideal” investment coach, what fundamentals would she focus on? This is my current take.
Read MoreFalse Promises: Going Passive is Not Momentum Investing
There is some popular marketing spin going around that indexing—constructing portfolios based on market-cap weights—is effective because it allows an investor to own more of companies that have been successful and appreciated, while moving away from losers that have been unsuccessful and declined This sounds logical, but it is empirically wrong.
Read MoreDimensions of Return
What are the levers that managers can pull to drive return for any investment strategy? This piece boils it down to consistency, magnitude, and conviction, and finds that even the best managers have done a poor job at portfolio construction. Most would be better off equal-weighting their own portfolios.
Read MoreWhen Breaking up is Easy To Do
The first of many hopefully...my good friend Steven Wood and I have been tossing around the idea of collaborating on some work in hopes it ups both of our research games. I often get asked whether or not factors go out of favor. This is a pretty good case study that yes, sometimes what worked in the past doesn't continue in the future.
Read MorePanic! At the Disco
Making money has been too easy since 2009. It’s about to get harder.
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