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 measuring the performance of private funds.
Quote of the Day
"Overall, PE portfolio companies are smaller, more leveraged, pay higher interest rates, and have lower margins than public companies."
(Dan Rasmussen)
Quant stuff
- A round-up of recent white papers including 'AI Beneficiaries: Investing in Second-Order Effects.' (bpsandpieces.com)
- Jane Street has centralized its operations on an obscure programming language. (economist.com)
Private equity
- A look at the fundamentals of private equity-owned firms. (mailchi.mp)
- Why manager selection matters so much for alternatives. (larryswedroe.substack.com)
- When PE managers cut company valuations, look out for more down the road. (klementoninvesting.substack.com)
Factors
- How to get Buffett-like returns by focusing on (boring) factors. (mebfaber.com)
- Why you may need a standalone REIT factor model. (papers.ssrn.com)
Insiders
- Insider trades provide the market information. (alphaarchitect.com)
- How to profit from informed trading. (papers.ssrn.com)
Research
- Reaching for yield is a real phenomenon when rates fall. (alphaarchitect.com)
- Trend following has a long history of supportive research. (optimalmomentum.com)
- Does buying stocks in big drawdowns work? Yes, but there is a catch. (morningstar.com)
- Do P/E ratios tell us more about earnings or returns expectations? (alphaarchitect.com)
- Why startups are increasingly choosing to buy back shares from employees. (papers.ssrn.com)
- Is passive investing fueling the rise of mega-firms? (morningstar.com)
