Tuesdays are all about academic (and practitioner) literature at Abnormal Returns. You can check out last week’s edition including a look at waning hedge fund performance persistence.
Quote of the Day
"How can retail investors beat these odds? As with blackjack, it’s generally best to avoid the table altogether. Or to deposit small amounts, understanding you are gambling, not investing."
(Alex Yin)
Venture capital
- VC-backed IPOs don't perform better over the long run. (papers.ssrn.com)
- Research shows a disadvantage to big VC funds, return-wise. (institutionalinvestor.com)
Alternative assets
- The institutionalization of alternative assets has backfired for most investors. (investmentecosystem.com)
- The dispersion in private equity portfolio returns is not unexpected. (mailchi.mp)
Factors
- You have to squint really hard to find a small-cap effect. (insights.finominal.com)
- The factor ETF space has gotten crowded. (riabiz.com)
Fund management
- Diseconomies of scale in fund management are real. (alphaarchitect.com)
- Why portfolio managers shift styles. (papers.ssrn.com)
Research
- What does the 'risk matters hypothesis' say? (elmwealth.com)
- The case against the lifecycle model of investing. (papers.ssrn.com)
- There seems to be a return premium to investing in polluting companies. (alphaarchitect.com)
- The results are not great for retail option trading returns. (papers.ssrn.com)
- Does cross-sectional asset pricing matter for the macroeconomy? (papers.ssrn.com)
- When do you need to take into account 'key person' risk? (aswathdamodaran.blogspot.com)