Factor selection is among our most important considerations when building financial models. So, as machine learning (ML) and data science become ever more integrated into finance, ...
Until recently, emerging market (EM) equities were among the darlings of the investing world. And why not? To most investors, a potentially diversifying asset class with prospects ...
The Role of Low Volatility Strategies in Investment Portfolios Low volatility equity strategies appeal to investors for many reasons. First, they help keep our portfolios ...
Commemorating Warren Buffett’s legacy and the Financial Analysts Journal’s 80th Anniversary through the lens of the award-winning article, “Buffett’s Alpha.”
Despite the headlines proclaiming its demise, active investment management is not going extinct — it’s evolving. The traditional mutual fund may be fading, but active decision-making ...
The finance community has invested much effort to identify new factors that may indicate a security’s forward-looking performance or a portfolio’s risk attributes. While this ...
Artificial intelligence (AI) can improve our ability to identify and predict financial crises. A key innovation in AI is the ability to learn from data without being told exactly ...
The clearing and settlement of equity trades may not sound like the most exciting subject, but it is an important one. And this year something big is happening. The US equity market ...
The benefits of factor investing as stand-alone strategies are well documented. Less well known is the positive impact factor strategies can have when they are added to institutional ...
For more than a century, the equity risk premium (ERP) — the excess return from stocks over bonds or cash — has been the backbone of investing, delivering 5% to 6% annually above ...
Market risk is the potential for losses in securities due to fluctuations in market factors like interest rates, currency values, FX/commodity spot rates, and equity prices. These ...
A broad segment of the industry invests based on established factors such as value, momentum, and low-risk. In this post, we share the key results from our study of out-of-sample ...
