Finance


Are We Living in a Post-Factor World?

Are We Living in a Post-Factor World?

In some ways new investment concepts are like any new technology. The progenitors of any early technology typically earn extraordinary profits until competition heats up. Eventually competition drives down profit margins and the technology becomes commoditized. But investment technology has a special quality that arises from…

ReSolve Buffett Bet PortfolioBased on Risk Parity and Factors

ReSolve Buffett Bet Portfolio
Based on Risk Parity and Factors

In 2008 Warren Buffett proposed a public bet that actively managed investment products, plagued by high fees, would not live up to the goal of beating a passive investment in the Vanguard S&P 500 ETF over the subsequent decade. Only one person had the intellectual conviction to represent the …

Part 2: Evidence Based Investing is DeadLong Live Evidence Based Investing!

Part 2: Evidence Based Investing is Dead
Long Live Evidence Based Investing!

Edesess’ case against evidence-based investing rests on three general assertions. There is a very real issue with using a static t-statistic threshold when the number of independent tests becomes very large. Financial research is often conducted with a universe of securities that includes a large number of …

Evidence Based Investing is Dead.Long Live Evidence Based Investing! Part 1

Evidence Based Investing is Dead.
Long Live Evidence Based Investing! Part 1

Michael’s case against evidence based investing rests on three general assertions. First, there is a very real issue with using a static t-statistic threshold when the number of independent tests becomes very large. Second, financial research is often conducted on a universe of securities that includes a large number of …