Investing Research


 

They Can’t All Be That Smart [0.09]

Posted on March 14, 2017, 2:08 a.m. by Investing Research @ [source]

Smart Beta is a label applied broadly to all factor-based investment strategies.

Most benchmarks weight constituents by market capitalization.

active companies earnings factor fundamental market market cap portfolio stock weighting

 

Factors are Not Commodities [0.12]

Posted on Feb. 1, 2017, 3:08 p.m. by Investing Research @ [source]

The narrative of Smart Beta products is that factors are becoming an investment commodity. Price/Earnings ratios are quoted widely as a common metric to gauge the relative cheapness of one stock to another.

Allergan common differences dividend earnings factor preferred ratio stock yield

 

The Risk of Low Volatility Strategies [0.10]

Posted on Nov. 3, 2016, 1:51 p.m. by Investing Research @ [source]

Most factor-based, otherwise known as Smart Beta, ETF strategies are based on a single concept like value or momentum. Over the last two years, the largest flows have been to ETFs investing in low volatility stocks.

asset beta etf excess factor market portfolio returns stock volatility

 

Buyback Bulls and Bears [0.13]

Posted on Sept. 30, 2016, 7:59 p.m. by Investing Research @ [source]

A lot of attention has been paid to share repurchases recently, which makes sense given the amount of money involved.

Bears contend that stock repurchases are nothing more than financial engineering, a method for managers to prop up earnings per share and stock prices to meet analyst expectations and vest their options.

accruals annualized excess bears beneficial blackout buyback buybacks ceos companies compensation denominator earning earnings earnings management earnings yield eps levels majority management manipulate earnings manipulating earnings options public quarter repurchase repurchases repurchasing repurchasing shares sec shareholders shares stock top decile

 

The Discipline of Value Investing [0.06]

Posted on Sept. 8, 2016, 6:16 p.m. by Investing Research @ [source]

Value has a long history as an investing style, backed up by empirical evidence that portfolios of the cheapest stocks outperform the broad market. The strategy behind value investing is simple: buy stocks with a low price relative to their current financial metrics like earnings, EBITDA or cash flow.

amazon business cap companies earnings ebitda energy expectations expensive flow free investment macy metric metrics oil refiners sales stock stocks universe subindustries times underperformed universe

 

When is a “Value” Company not a Value? [0.11]

Posted on July 31, 2016, 10:18 p.m. by Investing Research @ [source]

Value has broadly been accepted as an investing style, and historically portfolios formed on cheap valuations outperformed expensive portfolios. In particular, several operating metrics of value, like Earnings and EBITDA, have outperformed the more traditional Price-to-Book ratio.

/book book cheap companies earnings ebitda/ev effective effectiveness equity growth inactive issuance market cap market capitalization median metric operating metrics price ratio reduced shares spread stock