Tuesdays are all about academic (and practitioner) literature at Abnormal Returns. You can check out including a look at why our understanding of complex systems is limited.
Quote of the Day
"An economic model is just a forecast until it is given an explanation for why the forecast may be unusual or have meaning for action."
(Mark Rzepczynski)
Active managers
- Even money managers like to 'buy what they know.' (papers.ssrn.com)
- Active managers are subject to the same biases as individual investors. (alphaarchitect.com)
- Key takeaways from 20 years of the SPIVA report including 'Most active managers underperform most of the time.' (evidenceinvestor.com)
Corporate finance
- The Big Three money managers have seemingly helped increase the number of female board directors. (ft.com)
- Beware the young CFO. (papers.ssrn.com)
Research
- Nicholas Rabener, "The beauty of managed futures strategies is that there is always a trend somewhere that can be exploited. It does not matter if that market is going up or down." (insights.finominal.com)
- Where trend following stand after a strong run this past year. (aqr.com)
- How much does industry momentum explain overall stock momentum? (alphaarchitect.com)
- Equities are not uniformly correlated with interest rates. (caia.org)
- We don't really know how much of the market is held by passive investors. (klementoninvesting.substack.com)
- The case against systematic put protection strategies. (elmwealth.com)
- Are we building portfolios the wrong way? (pragcap.com)