Does Financial Education Actually Improve Outcomes? It’s Complicated.

The Causal Mechanism of Financial Education: Evidence from Mediation AnalysisFenella Carpena and Bilal Zia A version of this paper can be found here Want to read our summaries of academic finance papers? Check out our Academic Research Insight category.Q4 hedge fund letters, conference, scoops etc What are the Research Questions? Worldwide there are billions of people [...]

Read more...

Manager Sentiment And Stock Returns

Manager Sentiment and Stock ReturnsFuwei Jiang, Joshua Lee, Xiumin Martin, Guofu Zhou Journal of Financial Economics, forthcoming A version of this paper can be found here Want to read our summaries of academic finance papers? Check out our Academic Research Insight categoryQ4 hedge fund letters, conference, scoops etc What are the Research Questions? The authors investigate the asset [...]

Read more...

Rankings And Risk-Taking In The Finance Industry

Rankings and Risk-Taking in the Finance IndustryMichael Kirchler, Florian Lindner, and Utz Weitzel The Journal of Finance, Fall 2018 A version of this paper can be found here Want to read our summaries of academic finance papers? Check out our Academic Research Insight category.Q4 hedge fund letters, conference, scoops etc What are the Research Questions? Rankings are [...]

Read more...

Value, Momentum & Carry Across Asset Classes

There is a 72% probability of the San Franciso Bay Area getting hit by at least one earthquake of a magnitude of 6.7 or stronger between today and 2043 according to the United States Geological Survey, which is a scientific agency of the U.S. government. An earthquake of that magnitude [...]

Read more...

1042 QRP: How To Finance A Seller Note

Employee Stock Ownership Plans (“ESOP”) create unique opportunities for business owners and their employee-participants to build wealth through their companies. To foster broader adoption of ESOPs, Congress instituted a number of attractive tax advantages benefitting ESOP companies and the business owners who form them. Among these is the opportunity [...]

Read more...

Equity Investing Is Riskier Than You Probably Expected

Volatility LessonsEugene F. Fama and Kenneth R. French Financial Analysts Journal A version of this paper can be found here Want to read our summaries of academic finance papers? Check out our Academic Research Insight categoryQ3 hedge fund letters, conference, scoops etc What are the research questions? The purpose of this study was to examine [...]

Read more...

Payday Anomaly Revisited

Unless you are a die-hard buy-and-hold investor, chances are that you need to rebalance your portfolio at some point. Q3 hedge fund letters, conference, scoops etc The question is when? And how often? And why at a specific time? Some strategies rebalance once a year, some multiple times a day. What if [...]

Read more...

Herding And Mutual Fund Performance

Does Herding Behavior Reveal Skill? An Analysis of Mutual Fund Performance Q3 hedge fund letters, conference, scoops etcHao Jiang and Michela Verardo The Journal of Finance, Fall 2018 A version of this paper can be found here Want to read our summaries of academic finance papers? Check out our Academic Research Insight category.What are the Research [...]

Read more...

Why And How Investors Use ESG Information

Why and How Investors Use ESG Information: Evidence from a Global SurveyAmir Amel-Zadeh and George Serafeim Financial Analysts Journal A version of this paper can be found here Want to read our summaries of academic finance papers? Check out our Academic Research Insight categoryQ3 hedge fund letters, conference, scoops etc What are the research [...]

Read more...

A Simple Analysis Of 2018 U.S. Factor Returns

As the year turns, a common practice is to assess a portfolio and see how each position performed. Q3 hedge fund letters, conference, scoops etc The summary for stocks is easy: equities did not do well. Whether you were invested in U.S. stocks (down ~5%+), developed markets (down ~13%+), or emerging markets [...]

Read more...

Data Science Is Revolutionizing Investment Practice

Order from Chaos: Data Science is Revolutionizing Investment PracticeJoseph Simonian, Marcos Lopez de Prado, and Frank Fabozzi Journal of Portfolio Management, Fall 2018 A version of this paper can be found here Want to read our summaries of academic finance papers? Check out our Academic Research Insight category.Q3 hedge fund letters, conference, scoops etc geralt / Pixabay What [...]

Read more...

A Protocol To Prevent “Quants Gone Wild”

A Backtesting Protocol in the Era of Machine LearningRob Arnott, Campbell Harvey, and Harry Markowitz Working paper A version of this paper can be found here Want to read our summaries of academic finance papers? Check out our Academic Research Insight category.Q3 hedge fund letters, conference, scoops etc What are the Research Questions? Data mining in finance [...]

Read more...

Machine Learning Classification Methods And Factor Investing

In the last post in our machine learning series, we showed how nonlinear regression algos might improve regression forecasting relative to plain vanilla linear regression (i.e., when underlying reality is nonlinear with complex interactions). Q3 hedge fund letters, conference, scoops etc In this piece, we’ll first review machine learning for classification, [...]

Read more...

Warren Buffett Is Wrong About Options (Except)

Warren Buffett sold long-dated, deep out of the money puts in the years leading up to the financial crisis. In his 2008 Annual Letter to Shareholders, he explained: Q3 hedge fund letters, conference, scoops etc I believe each contract we own was mispriced at inception, sometimes dramatically so. He goes on later [...]

Read more...

Trend Following On Steroids

Trend following is well-known and the simplest version is as follows: you buy an asset when it has positive momentum (the price goes up) and you sell it and go to cash (or any other safe haven) when the momentum turns negative.(1) The best-known example of trend following is [...]

Read more...

Measuring Factor Exposures: Uses And Abuses

Measuring Factor Exposures: Uses and AbusesRonen Israel and Adrienne RossThe Journal of Alternative InvestmentsA version of this paper can be found hereWant to read our summaries of academic finance papers? Check out our Academic Research Insight categoryQ3 hedge fund letters, conference, scoops etcWhat are the research questions?USES: Can investors really [...]

Read more...

How To Use Trend Following Within A Portfolio

A question we have been receiving recently is the following:How should I use trend following within a portfolio?Q3 hedge fund letters, conference, scoops etcGenerally, the questions are related to our Global Value, Momentum, and Trend Index, which allocates to the (1) Value, (2) Momentum, and (3) Trend factors.A big [...]

Read more...

Is Financial Advice Conflicted… Or Is It Simply Misguided?

The Misguided Beliefs of Financial AdvisersJuhani T. Linnainmaa, Brian Melzer and Alessandro Previtero Kelley School of Business Research Paper No. 18-9 A version of this paper can be found here Want to read our summaries of academic finance papers? Check out our Academic Research Insight category.Q3 hedge fund letters, conference, scoops etc What are the Research [...]

Read more...

Subscribe to our mailing list

* indicates required

Opt out of occasional 3rd party offers


0