Featured Papers and Interviews With Industry Thought Leaders
Generating alpha within a portfolio is an objective that most investors strive for, but is something that often evades their grasp. There have been a number of quantitative models created over time with the aim of outperforming the market, however, as markets are continuously developing and evolving, it is difficult to find a strategy that performs consistently over the long term.
Another issue is that there are various external and internal factors that can drive market performance, and therefore settling on a particular strategy can be challenging for investors.
It is widely acknowledged by the investment community that achieving an optimal portfolio allocation is seen as a way to produce consistent and uncorrelated excess returns over the course of a full investment cycle. One metric in particular that has been seen as valuable to investors when constructing a portfolio is earnings acceleration, as it has historically been
useful when predicting future returns.
This Special Report investigates the effectiveness of earnings acceleration in generating excess returns that are significant and durable across different market cycles, whilst also providing diversification benefits.