Visualizing Factors & Themes — What You See is What You Get

Categories Insight, OSAM Research, Value, Yield

“Is there a point where index funds theoretically can’t work a course?” asked Charlie Munger at this year’s Daily Journal Corporation Annual Meeting.1 “If everybody bought nothing but index funds, the whole world wouldn’t work as people expect.”

We agree.
So to help animate Munger’s premonition in real-time (see the cheery motion graphics below), our Team’s Developer / Performance Analyst)2 rolled up his coding sleeves and hacked into our “Factor Style Grid”.  Continue reading “Visualizing Factors & Themes — What You See is What You Get”

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

Webinar Replay:
5 Considerations for Equity Income Investors

Categories Author: Ehren Stanhope, Income, Investing, Yield

Ehren Stanhope photoGenerating income in client portfolios has always been tough.1 And — prospects for rising rates notwithstanding — it will likely be a challenge for years to come. Ehren Stanhope, CFA (OSAM Principal and Client Portfolio Manager) shares his expertise in global dividend-paying stocks, following up on his Dec-2016 postContinue reading “Webinar Replay:
5 Considerations for Equity Income Investors”

Fundamental Relationships have Changed in QE’s Wake

Categories Author: Ehren Stanhope, Investing, U.S., Value, Yield

“When the facts change, I change my mind. What do you do, sir?”

— Attributed to John Maynard Keynes (1883-1946)

I read a lot of market commentary. There are a lot of doomsayers out there. While I can’t argue with the fact that valuations are higher than they were at the market lows in 2009, the calls for a calamitous decline based on valuation seem overblown. Valuation tends not to be a good predictor of bear markets. Continue reading “Fundamental Relationships have Changed in QE’s Wake”