OSAM Guide to Factor AlphaSM

Categories Author: Ehren Stanhope, Investing, Market Cap, Momentum, Quality, Value, Yield

BACKGROUND: We invest deeply in our in-house research, trading, and technology platforms and 100% of the research feeding our investment process is conducted internally. In most cases, our exhaustive study of fundamental investment characteristics leads us to redefine industry-standard metrics at the most granular level in order to boost the accuracy and strength of the signal. We’re fortunate to have a core team of Researchers & Technologists who all share a passion for, and background in, factor-based investing (visit our Blog archives for more background). As a result, OSAM is a living, breathing, evolving, team-based research project. This Guide is an overview of our findings. Continue reading “OSAM Guide to Factor AlphaSM

A Factor Investor’s Perspective
on the Economic Cycle

Categories Author: Ehren Stanhope, Investing, Momentum, Quality, Value

diagram

“If you spend more than 13 minutes analyzing economic and market forecasts, you’ve wasted 10 minutes.”

— Peter Lynch

Though unpredictable, the economic cycle has significant implications for investors. Given the vast amount of evidence that certain themes consistently outperform — and underperform — throughout the cycle, an allocation to passive market cap-weighted indexes almost seems naive. Continue reading “A Factor Investor’s Perspective
on the Economic Cycle”

Factor Alpha & International Investing: Part 4 (of 4)

Categories International, Investing, Momentum, OSAM Research, Value

(This is the fourth in a series of four posts that examine the efficacy of factor-based investing in the International market.)

Active Management Landscape  Continue reading “Factor Alpha & International Investing: Part 4 (of 4)”

Factor Alpha & International Investing: Part 1 (of 4)

Categories International, Investing, Momentum, OSAM Research, Value

(This is the first in a series of four posts that examine the efficacy of factor-based investing in the International market.)

Strategies should deliver concentrated factor exposures designed to deliver alpha. Unfortunately, the proliferation of factor investing over the recent past has missed this key point. Instead, most factor-based or Smart Beta strategies consist of hundreds of holdings where the bulk of the weight is allocated to the largest companies while providing only slight factor tilts. Continue reading “Factor Alpha & International Investing: Part 1 (of 4)”