In this post, we review measures of corporate leverage in the United States. Although corporate debt has soared, concerns about debt growth are mitigated in part by higher corporate cash flows.
Axioma and Robeco seem to agree that focusing on a single factor portfolio (with unintended exposures to other factors) is a mistake, and efficient factor investing may necessitate a multi-factor perspective. Additionally, Research Affiliates describes common misconceptions about factor investing that involve performance expectations, diversification, and risk management within factor…
One of the most popular approaches to generating alpha in equity portfolios is to follow a value strategy - underweighting shares in companies perceived as "dear" and overweighting those which are seen as "cheap". The "value factor" (although constructed differently by different firms) is one of the key factors deployed by proponents of a "factor investing" style of equity investing.
Punters expect instant liquidity, if a fund can’t fulfil that requirement it’s in extreme territoryIs this the end of Neil Woodford’s career as the UK’s most famous, and most celebrated, fund manager? It could be that serious. Woodford has recovered from setbacks in the past, but they have been of the conventional stock-picking variety – a bad run in the markets. Blocking redemptions from a…
On YouTube, City stock-picker says decision ‘was necessary to protect your interests’Neil Woodford has apologised to investors in his first public comments since he suspended trading in his largest fund on Monday.Once the UK’s most renowned fund manager, Woodford said he was “extremely sorry” for taking the decision to block investors from pulling cash from his flagship Equity Income Fund – but…
How investors assess utilities that use coal, carbon emission-free nuclear power, low-cost natural gas, and renewable sources, such as wind and solar to produce electricity…
Suspension of his high-profile fund sparked investor anger and talk of a formal FCA probe. The horse-riding, Porsche-driving stock picker badly needs to change tackHe was, the BBC declared in 2015, “the man who can’t stop making money”. He was the rock star of pensions and fund management, awarded a CBE for his services to the economy. But now, since Neil Woodford stopped investors from…
The outperformance of the size, value, and reversal factors is strong, but the momentum factor, which has performed well in the U.S., does not work in China. This is the conclusion of a new white paper published by Neuberger Berman about quantitative investing in China A shares. It has aRead More
Savers denied access to equity income fund after investment manager halted withdrawalsFamed City stock-picker Neil Woodford suffered another blow on Tuesday, as a decision to block investors from pulling cash from his flagship fund sparked a share price fall in his listed vehicle.Woodford’s patient capital trust fund, which is listed on London’s FTSE 250 index, tumbled as much as 20% in early…
Will the pendulum swing back to active investing?
Passive equity strategies have seen huge inflows in recent years. Will this create distortions that active managers can take advantage of? The papers below explore how active vs passive returns are impacted by market conditions and examine how r
While the anticipated fiscal policy moves that fueled investor optimism seem likely to be delayed, economic and business conditions continue to improve…