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False Promises: Going Passive is Not Momentum Investing

June 14, 2018 by Ehren Stanhope

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.

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June 14, 2018 /Ehren Stanhope
momentum, stocks

The True Cost of Indexing

February 16, 2017 by Ehren Stanhope

Anyone in the investment industry not living under a rock has had an intense conversation with a client about the merits of passive exposures in investment portfolios. The cacophony of articles on this topic is both silent and deafening. Most include little proof for assertions of market efficiency and parrot a conglomeration of statements parsed from other articles. As a result, passive investors improperly forego dramatically higher potential returns for seemingly low cost market exposure.

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February 16, 2017 /Ehren Stanhope
passive, indexing, active management, value, momentum, shareholder yield

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