Tuesdays are all about academic (and practitioner) literature at Abnormal Returns. You can check out last week’s links including a look at why hedge fund managers may engage in ‘greenwashing.’
Quote of the Day
"Momentum is without question one of the most robust investing factors. It is hard to argue with the long-term data that supports its effectiveness. But if you are going to follow a momentum strategy, it is important to become comfortable with the fact that the types of stocks you will get will vary significantly over time."
(Jack Forehand)
Hedge funds
- More evidence demonstrating that diverse teams generate hedge fund alpha. (institutionalinvestor.com)
- The hedge fund industry is bigger than commercial databases indicate. (papers.ssrn.com)
Retail traders
- Properly measured the returns on retail trades are negative. (klementoninvesting.substack.com)
- Why options can confuse new traders. (moontowermeta.com)
Diversification
- Diversification still works, but it's not as easy as before. (morningstar.com)
- From an asset allocation perspective Bitcoin isn't really correlated with traditional asset classes. (lightfinance.blog)
Research
- Fixed income factors won't solve the problem of historically low interest rates. (alphaarchitect.com)
- Some evidence showing investors are happy to pay for real, operational growth. (klementoninvesting.substack.com)
- Which companies are more likely to have dual-class stock at IPO. (papers.ssrn.com)
- Does indexing in emerging markets make sense? (theemergingmarketsinvestor.com)
- A round-up of March's white papers including "Small-Cap: Much Ado About Quality." (bpsandpieces.com)
- Base rates matter: the case of Tesla ($TSLA). (medium.com)
