2017 Factor Alpha Newsletter
“Value” vs. “Momentum”

Categories Investing, Momentum, OSAM Research, Value

The past year was full of plot twists. Momentum beating Value was not one of them. The victory comes as no surprise because these 2 themes swap leadership cyclically — 2017 was Momentum’s year. And, as you can see in the exhibits below, Momentum’s winning streak definitively spans all 7 of the universes we ran. Continue reading “2017 Factor Alpha Newsletter
“Value” vs. “Momentum””

Factor Alpha Newsletter
“OSAM Value” (2000 thru Oct-2017)

Categories Investing, OSAM Research, Value

* The backtested results for this article are as of 10/31/17. 1

Value is the centerpiece of our investment framework and it gets built into every one of our strategies — even growth-oriented strategies. We believe that what you pay for an investment is one of the most predictive characteristics of future alpha. Continue reading “Factor Alpha Newsletter
“OSAM Value” (2000 thru Oct-2017)”

2017 Factor Alpha Newsletter
Small Stocks

Categories Investing, OSAM Research

So far in 2017, investors saw how multi-factor exposure to Value — in concentrated portfolios — can be beneficial in the small cap space.1 This 1Q17 Small Cap2 edition of the Factor Alpha Newsletter (see also: All Stocks & Global Large Cap) compares our proprietary multi-factor themes3 to the Russell 2000® Value Index (R2000V).4

Continue reading “2017 Factor Alpha Newsletter
Small Stocks”

Small Cap Equities — Inefficient & Opportune
(Part 2 of 2)

Categories Author: Chris Meredith, Author: Ehren Stanhope, Investing, U.S., Value

(Part 1 linked here)

Avoid Value Traps via a Quality Overlay

Not every cheap stock outperforms. Even within the cheapest decile of value, there is wide dispersion in underlying stock returns. Certain stocks are cheap for a reason: value traps. Continue reading “Small Cap Equities — Inefficient & Opportune
(Part 2 of 2)”

Small Cap Equities — Inefficient & Opportune
(Part 1 of 2)

Categories Author: Chris Meredith, Author: Ehren Stanhope, Investing, U.S., Value

Small cap equities1 are generally misunderstood and underappreciated. We believe they present a phenomenal total return opportunity for discerning long-term investors. The construction of common small cap indices and the nuances of the small cap universe favor an active approach. Continue reading “Small Cap Equities — Inefficient & Opportune
(Part 1 of 2)”

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)”