#Alphaarchitect

More competition may instead encourage issuers to create more complex products that transfer additional risk to retail investors.

Most tail risk hedges fail in the quiet years, not the crash. Two documented cases and an eight-part due diligence framework for advisors.

Empirical relationships estimated decades ago can continue to influence decisions after the original sample ends, but with a few questions.

Diversification is not a one-time decision. It should be applied within factors, across factors, and even across time.

Empirical relationships estimated decades ago can continue to influence decisions after the original sample ends, but with a few questions.

This paper introduces a new perspective. Shareholder activists do not need formal coordination to act together but instead use market signals.

If you allocate to factor strategies, this paper has interesting findings as to where your returns are actually coming from.

Portfolio choices are not driven by preferences alone, they are also shaped by frictions, small costs, inertia, and default options.

From Alphaarchitect RSS Feed: Why the 351 Exchange Might Revolutionize Investing

Better institutional investors shift their focus toward macro risks when markets become volatile, and toward the stocks that matter most.

If you’ve used momentum as part of your investment strategy over the past decade and found it disappointing, you’re not imagining things.

Private equity may not deliver the promised edge. There is a simpler, more liquid way to access the same economic exposure.

From Alphaarchitect RSS Feed: Rethinking Trend Following: Optimal Regime-Dependent Allocation

This research shows that when banks closely track how projects evolve and act on new information, they can significantly reduce losses. Even more importantly, the mere presence of monitoring encourages borrowers to behave more responsibly, improving…

Investment professionals have long relied on factor investing—strategies built around characteristics like value, momentum, and quality—to generate returns beyond the broad market.…

Stock momentum has long been a workhorse idea. Buy recent winners. Sell recent losers. Critics argue those profits mostly come from riding factor trends like value, size, or industry tilts. This paper pushes back.…

The Ultimate Moving Average Handbook: Bringing Science into the Art of Trend Following The Ultimate Moving Average Handbook: Bringing Science into the Art of Trend Following was originally published at Alpha Architect.…

There is a durable, stock-specific momentum component tied to how prices react to firm news around earnings dates. The result is a cleaner, lower-risk way to capture momentum without leaning so heavily on broad factor moves.…

New research challenges a long-standing rule in momentum investing—and reveals surprising insights about when to use it For decades, investors using momentum strategies have followed a simple rule: ignore last month's returns.…