The Profitability Factor

Phil DeMuth discusses a possible breakthrough for factor-based investors known as “Profitability”. “Over time, tilts towards value, momentum and profitability have outperformed the market, and due to the diversification benefits, a combined portfolio of these three has provided much higher reward per unit of risk and a significant reduction in extreme risk or losses. Thus, Read more about The Profitability Factor[…]

Reflections on the Efficient Market Hypothesis: 30 Years Later

Burton Malkiel, the author of the classic A Random Walk Down Wall Street, revisits his advocacy for the Efficient Market Hypothesis (EMH): “The evidence is overwhelming that active equity management is, in the words of Ellis (1998), a ‘loser’s game.’ Switching from security to security accomplishes nothing but to increase transactions costs and harm performance. Thus, Read more about Reflections on the Efficient Market Hypothesis: 30 Years Later[…]