The Fama-French Three Factor Model

This is an excellent review of factor-based investing written by Frank Armstrong III: “The Fama French Three Factor Model provides a highly useful tool for understanding portfolio performance, measuring the impact of active management, portfolio construction and estimating future returns. The Three Factor Model has replaced the Capital Asset Pricing Model (CAP-M) as the most widely accepted explanation of stock prices in the aggregate and investor returns.” Read the full article >>