Tuesdays are all about academic (and practitioner) literature at Abnormal Returns. You can check out last week’s edition including a look at why noise traders are a threat to short sellers.
Quote of the Day
"Perhaps the value premium, while not being a free lunch (there’s plenty of evidence supporting a risk-based explanation), is at least a free stop at the dessert tray for those investors willing to accept their incremental economic cycle risk."
(Larry Swedroe)
Private equity
- Why niche private equity strategies outperform. (institutionalinvestor.com)
- Why private equity managers tilt toward bigger, safer investments. (klementoninvesting.substack.com)
- Elite college endowments have outperformed for one reason - taking on more risk. (institutionalinvestor.com)
Research
- The straightforward case for the low volatility effect. (blogs.cfainstitute.org)
- Does cross-asset momentum work? (insights.finominal.com)
- How do you account for 'catastrophic risk' in valuing a company? (aswathdamodaran.blogspot.com)
- Using ChatGPT to forecast corporate investment. (nber.org)
- On the value of better corporate governance. (klementoninvesting.substack.com)
- Expected value only tells you so much about a bet. (moontower.substack.com)
- How does race affect the muni bond market? (wsj.com)