Tuesdays are all about academic (and practitioner) literature at Abnormal Returns. You can check out last week’s edition including a look at the challenges in using financial data.
Quote of the Day
"Stock picking by generative AI, however, replaces one trader’s biases with a murky crowdsourced bias soup."
(Bryce Elder)
Lists
- Cullen Roche's top ten pet peeves including 'Passive investing will destroy the world.' (disciplinefunds.com)
- 11 things that don't make sense to Cliff Asness including 'We believe even modest amounts of leverage is risky…but large concentrated bets like being 100% in equities are just peachy keen.' (aqr.com)
Active management
- If passive investing is bad for market efficiency, why aren't active managers cleaning up? (acadian-asset.com)
- Why do investors continue to pay the fees on actively managed mutual funds? (papers.ssrn.com)
Research
- There is no guarantee of an equity risk premium over reasonable time horizons. (blogs.cfainstitute.org)
- How economic trend can complement price trend in momentum models. (alphaarchitect.com)
- Some thoughts on return stacking as a strategy. (rogersplanning.blogspot.com)
- What happens when traders manage credit-focused bond funds? (papers.ssrn.com)
- Understanding options basics. (alphaarchitect.com)
- A round-up of recent research white papers including 'Apples and IRRanges: Peeling Back the Challenges of Performance Measurement in Private Markets.' (bpsandpieces.com)
- Why "The Counting House" by Gary Sernovitz is a must-read for allocators. (investmentecosystem.com)