Investing Research Articles

…investing based on the principles of behavioral finance is indistinguishable from value investing, producing similar raw excess returns.

…stock market booms arise from the confluence of strong economic growth and low inflation. Excessive (?) monetary policy reaction to rising inflation kills the booms.

…technical trading is more likely to be successful when applied to small-capitalization and illiquid stocks.

…past research indicates that there may be a good short-term price trade (but watch out for frontrunning) and a good longer-term volatility play for forced resignation of a CEO with replacement by an outsider.

…investors/traders who take the advice of spam stock touts are likely to lose big and fast.

…small capitalization value investing works by systematically buying negative noise and selling positive noise.

…equity hedge funds generate alpha by stock picking, not market timing.

…hedge funds in aggregate perform best around the turn of the year and during odd-numbered years. This seasonality is little different from that of the overall stock market.

…as a corollary to mean reversion of firm profitability, asymmetries in small-big and value-growth stock migrations drive the size effect and the value premium.

…relatively simple clones based on exchange-traded instruments perform well enough to be considered as liquid, transparent, scalable and low-cost alternatives to hedge funds for many fund styles.