Tuesdays are all about academic (and practitioner) literature at Abnormal Returns. You can check out last week’s edition including a look at why trading against retail order flow is profitable.
Quote of the Day
"Unlike rolling dice or flipping coins, it’s hard to learn anything about the distribution of prices from direct experience."
(Kris Abdelmessih)
Expected returns
- What is the best way to forecast long term expected returns? (alphaarchitect.com)
- A survey of equity risk premium estimates. (klementoninvesting.substack.com)
- How to think about older financial markets data. (blogs.cfainstitute.org)
Active management
- There is no magic bullet when it comes to identifying superior actively managed funds. (morningstar.com)
- Angel investing returns are highly skewed. (papers.ssrn.com)
- Why retail traders underperform. (klementoninvesting.substack.com)
Incentives
- The downsides of working for a family-owned firm. (papers.ssrn.com)
- The assessed value of the homes of tax assessors are notably below those of their neighbors. (papers.ssrn.com)
- Why CEOs like Zuck and Bezos are fawning over Trump - rent seeking pays off. (marginalrevolution.com)
Gender
- How portfolio managers tilt toward companies associated with their gender. (papers.ssrn.com)
- When couples relocate for work, gender norms dominate. (nber.org)
Economics
- There is a bear market in academic economist jobs. (x.com)
- How Paul Krugman changed how we talk about economics. (noahpinion.blog)
Research
- The big growth stocks are increasingly a market unto themselves. (acadian-asset.com)
- Factors are not set in stone. The world changes. (klementoninvesting.substack.com)
- How to model the performance of pod shops. (mailchi.mp)
- FX hedging is not a set-it-and-forget-it exercise. (papers.ssrn.com)
- Blackrock ($BLK) on sizing a Bitcoin position. (blackrock.com)
- How AI agents could take over parts of the investment management stack. (institutionalinvestor.com)
