Factor Investing
Investment management is evolving into three distinct branches, says Ronald N. Kahn: indexing, smart beta/factor investing, and pure alpha.
From a factor perspective, what has driven Berkshire Hathaway's outperformance?
Smart beta has an especially strong reality distortion field, says Nicolas Rabener.
The notion that companies that care about the environment, look after their employees, and exhibit good governance outperform is likely a mirage, says Nicolas Rabener.
Can Joel Greenblatt’s well-known Magic Formula help address Mr. Market's split personality?
Does factor investing in micro- and small-cap stocks in the United States offer any additional alpha?
The recent sell-off in technology, especially among FAANG stocks, led to renewed comparisons of the tech sector today to that of the dot-com bubble era. But that might be a stretch, says Nicolas Rabener.
Why do professional investors talk about behavioral finance more than they apply its insights? How do single stocks influence factor returns? The leading Enterprising Investor posts from last month address these questions and more.
Using the Value factor as a case study, how do single stocks influence factor returns? And how do the FAANG stocks influence six common equity factors?
Factor investing is everywhere, but considerable uncertainty remains about what factors and their related products represent. So Nicolas Rabener breaks down six well-known factors by sector.