Tuesdays are all about academic (and practitioner) literature at Abnormal Returns. You can check out last week’s edition including a look at the volatility risk premium.
Quote of the Day
"In turn, simply looking at historical results and urging investors to “buy the thing that’s gone up the most over the long term” is not financial analysis, it is finger painting."
(Cliff Asness)
Private equity
- What does the research say about private equity performance? (morningstar.com)
- Why it's so hard to compare the performance of public and private investments. (caia.org)
Fund management
- How should we assess 'pedigree' when it comes to investment managers? (investmentecosystem.com)
- Why hedge funds are happy with higher short term interest rates. (bloomberg.com)
Quant stuff
- Researchers are now unleashing ChatGPT on stock selection models. (alphaarchitect.com)
- Optimal betting requires a bankroll calculation. That isn't as easy as you think. (capitalgains.thediff.co)
Research
- Nicolas Rabener, "Theoretically, interest rates matter for stock prices, but practically they do not matter much." (insights.finominal.com)
- In high yield credit, yield does not equal return. (mailchi.mp)
- Saying equities have had higher returns than bonds is not that interesting an observation. (aqr.com)
- How many factors do you really need? (klementoninvesting.substack.com)
- Why noise traders are a threat to short sellers. (alphaarchitect.com)
- A round-up of research on cross-asset correlations. (capitalspectator.com)
- How 'auto-accounts' could help people start saving. (wsj.com)