Practical analysis for investment professionals

equity research


Top 10 Posts from 2016: How to Read Financial News, Active Investing

The end of the year is a good time to look back and take stock. What Enterprising Investor articles did readers find most compelling in 2016? The results are illuminating. Our top content runs the gamut from the granular — tightly focused, practice-oriented material on starting a firm and what to read to stay informed — to more "big picture" analysis on negative interest rates and the ongoing active vs. passive debate. Taken together, they reflect the currents at work in the investment management profession at both the system-wide and individualized levels.

Top Five Articles from August: James Grant, Marc Faber, Bond Market Bubbles

Highlights from last month include tips on how to effectively read financial news by Robert J. Martorana, CFA; James Grant's opinion of negative interest rates; a discussion of Marc Faber's take on the recent shifts in the global balance of economic power by Ron Rimkus, CFA; and the four main skill sets and one big realization that make up intelligence training, by Nathan Jaye, CFA.

How to Read Financial News: Tips from Portfolio Managers

Reading obscure financial information may look and feel like productive work, but most of this content has little chance of leading to better results, says Robert Martorana, CFA. So portfolio managers must learn to read fast and quickly detect nonsense.

Is Active Management Dead? Not Even Close

Rumors of active management's demise are greatly exaggerated, AthenaInvest's C. Thomas Howard tells Jason Voss, CFA, and he has the evidence to make his case and the tools to help change active management for the better.

Cutting through the Noise of Volatile Markets

Changing conditions impair the signal-to-noise ratio. Investors should commit more time to looking for deeper explanations for market behavior.

Best of 2015: Research Highlights for Busy Practitioners

Each month our editors sift through hundreds of articles from periodicals and academic journals to help readers stay abreast of relevant practitioner-oriented research in the field of finance and investments. We sum up the most relevant pieces for busy practitioners. So which were most popular with readers this year?

A Little Industry Experience May Make You a Better Analyst

Is an analyst with prior industry experience more likely to be on target with his earnings forecasts and stand a better chance of being named to Institutional Investor magazine’s All-America Research Team? In a word, yes. At least that was the conclusion of a recently published study which examined the biographical data and earnings estimates of 2,590 analysts over a period of nearly three decades.

Weekend Reads for Investors: Fama, Forecasts, and the CAPE Debate

Perhaps not surprisingly, global equity markets have gotten off to a rather sluggish start in 2014. Emerging market stocks continue to lag while European markets, up slightly, lead developed markets. In the US, stocks have met little resistance since experiencing a 19% correction in the summer of 2011. Since World War II, US stocks have seen 10% corrections, on average, every 18 months. This may be cause for concern for some investors. And with valuation multiples stretched, corporate earnings are also undoubtedly on the minds of investors.

Tougher Times for Securities Analysts

Increased scrutiny of securities analysts typically follows in the wake of widespread financial turbulence. This time, it seems, is no different.

The Competing Incentives and Pressures that Influence Sell-Side Analysts

A recent study designed to decipher the “black box” of sell-side analyst decision making sheds new light on the driving forces behind two important outputs of their work: earnings estimates and stock recommendations.



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