Tuesdays are all about academic (and practitioner) literature at Abnormal Returns. You can check out last week’s edition including a look at why holding a stock for the long run is so challenging.
Quote of the Day
"Over-weighting personal biases or magical thinking can afflict every investor. It’s also the bane of gamblers."
(Carolyn Silverman and Timothy L. O'Brien)
Quant stuff
- Can machine learning predict factor returns? (alphaarchitect.com)
- Multiples are imperfect proxies for discounted cash flows. (papers.ssrn.com)
- A quant strategy will stop working before the statistics say so. (robotwealth.com)
AI
- Using AI to read fund documents. (alphaarchitect.com)
- Ken Griffin is skeptical AI can generate alpha. (bloomberg.com)
Diversification
- An estimate of the total world portfolio and its past returns. (on.ft.com)
- Market evolve, so portfolio diversification is a moving target. (mailchi.mp)
Research
- The S&P 500 inclusion effect is back. (advisorperspectives.com)
- How to use private equity in your portfolio. (morningstar.com)
- The case for international small value. (mailchi.mp)
- Price momentum and earnings momentum are two different things. (klementoninvesting.substack.com)
- The challenges of standard strategies to capture technology sector trends. (quantpedia.com)
- Traders on Polymarket who bet against Trump win more often than not. (bloomberg.com)
- Inside the results of high profile UK fund, Quadrature Capital. (ft.com)
