Microcaps’ Factor Spreads, Structural Biases,
and the Institutional Imperative

Categories Author: Jim O'Shaughnessy, Insight, Investing

“What Works on Wall Street” Podcast
Many investors readily agree that alpha is scarce. It is hard to find, always in great demand, and requires skill to extract. The eclectic microcap universe provides a disparate group of continually evolving and devolving businesses with structural features that remain persistently attractive for investors…


Episode 1 transcript: Continue reading “Microcaps’ Factor Spreads, Structural Biases,
and the Institutional Imperative”

Factor Crowding, Cobras,
and Other Market Hyperboles

Categories Author: Jim O'Shaughnessy, Insight, Investing

“When a measure becomes a target, it ceases to be a good measure.”
— Goodhart’s Law1

“What Works on Wall Street” Podcast
After reading as many as 18 different WSJ articles on the subject, it’s understandable why investors might be up in arms about the alleged perils of factor crowding. We hope this discussion allays some of those concerns…


Episode 1 transcript: Continue reading “Factor Crowding, Cobras,
and Other Market Hyperboles”

Update: A Generational Opportunity

Categories Author: Jim O'Shaughnessy, Investing, U.S.

“We’ve got the secret sauce. It doesn’t work all the time perfectly, but you just look at where we go, milestone after milestone:
Never bet against America.”

— Warren Buffett (Jan. 19, 2017)1

Every time I feel short-term pain, I review the long-term data — going all the way back to 1871 in this case — and it helps me focus on the stock market’s long-term potential.  Continue reading “Update: A Generational Opportunity”