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[…]

The Greatest Hits of Investing

An excellent, easy to read, whitepaper from Brad Steiman of Dimensional Fund Advisors. “If free markets fail, it would be easy for investors to systematically beat the market, but in reality, man versus the market isn’t a fair fight and most of us should accept market forces rather than resist them.” Read the entire whitepaper >>

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 Read more about The Fama-French Three Factor Model[…]