Factor Investing
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.
What were the articles of the year on Enterprising Investor? The 10 leading posts covered a broad spectrum of subjects, from interviewing and cover letter tips, to how to optimize decision making and better understand blockchain technology. They were authored by some of the most influential thinkers in finance, including Michael Batnick, CFA, and Ben Carlson, CFA, and together offer an illuminating view into the state of the investment profession in 2017.
Interest in "factor investing" reached an all-time high in May, according to Google Trends. So Nicolas Rabener and his associates analyzed factor valuations using fundamental metrics and contrasted these current valuations with historical averages as a method to determine factor attractiveness.
Have the advances in technology, computing power, and data made the markets more efficient? It’s “not clear,” according to Nobel laureate Eugene Fama.
Your Complete Guide to Factor-Based Investing is invaluable to practitioners who wish to design optimal portfolios. The authors define basic terms and discuss practical issues of implementation.