Dusting Off Graham and Dodd? Hedge Funds Say the Value Rotation is Real20210112155847

Dusting Off Graham and Dodd? Hedge Funds Say the Value Rotation is Real

Have hedge funds bought into to the much-discussed value factor rotation that began in the Fall? The short answer is yes, in a big way.Strategies that replicate portfolios of hedge funds using factor models can determine how hedge funds are positioned today across major equity markets, and how those...
Should you ignore financial academic research?20161012134208

Should you ignore financial academic research?

October 12, 2016News
Excerpted text from Andrew Beer’s article in Investment Europe today:Marketers like nothing more than to pitch a product “grounded in decades of academic research.”  The implication is that objective academics have dispassionately studied market phenomena to uncover canonical truths.  In theory, thi...
Why Apple is NOT a Top Ten Holding of 93% of Hedge Funds20160308151554

Why Apple is NOT a Top Ten Holding of 93% of Hedge Funds

To infinity and beyondBuzz Lightyear A recent report by Goldman Sachs describes Apple (AAPL) as a “Very Important Position” (top ten holding) for 47 hedge funds. Overlooked is that fact that it’s not a significant position for 93% of the hedge funds in the survey and represents only a 1-2% over...
Is Warren Buffett a Value Investor?20160229081145

Is Warren Buffett a Value Investor?

February 29, 2016Research
 The best business to own is one that over an extended period can employ large amounts of incremental capital at very high rates of return.Warren BuffettThe quote above is a far cry from value investing as described in such canonical works as Graham and Dodd’s Security Analysis (1934). Those wo...
Why Don’t Value Investors Always Buy the Dips?20160120192947

Why Don’t Value Investors Always Buy the Dips?

In the short run, the market is a voting machine; in the long run, it’s a weighing machine.For fun, let’s assume you’re a value investor looking at GM in late 2015.  Like all good value investors, you want to make decisions based on “intrinsic value” – that is, what a company is worth, not where the...