Investing Research Articles

…stock market information warfare may be a winning strategy.

Is this how a savvy hedge fund manager plays the game? First, get cozy with other fund managers, financial market research firms and the financial media. Then “orchestrate” the attention paid to a company in which the manager’s fund has taken a position? Here’s a picture, with some links to relevant allegations and news/commentary…

…reputational concerns of institutional fund managers may create mispricing opportunities for other investors.

…ormal research on the emotions of investing suggests that mood affects investor behavior, but it does not offer much in the way of practical trading edges. Keeping one’s own emotions in check does seem key to outperforming as a trader.

…traders can outperform by entering positions when volatility spikes and then taking profits quickly.

…rapid meme detection via Internet-enabled technologies may offer an edge for tuned-in traders.

…investors/traders may pivot on earnings, but appear to react to the inflation rate rather than interest rates.

…equity investors should be contrarian when considering economic forecasts. Bad is good.

…the empirical evidence for the size effect is superficially consistent, but frail at closer inspection. The size effect is not “dead,” but it is ailing.

…the bid-ask spread, transaction costs and the price impact of trading make the value premium in small-capitalization stocks hard to capture. The prey is generally too elusive for mutual funds and indexes.