“Great things are done by a series of small things brought together.” -Vincent Van Gough Since the publication of the Efficient Market Hypothesis in 1965, the academic and investment worlds have coalesced to the opinion that making excess profits (“beating the market”) through market timing is very hard and almost impossible after costs are considered. […]
CONTINUE READING >“Buy to the sound of cannons, sell to the sound of trumpets.” -Lord Nathan Rothschild, 1810 The Rothschilds were one of the world’s richest families and went on to form a financial dynasty. In 1815, they were rumored to have made a fortune when they used a carrier pigeon to send the result of […]
CONTINUE READING >In our view, the Efficient Market Hypothesis isn’t true, but it is close to being true. It is very hard to beat the market. In any competition it pays to analyze the opponent. So, to beat the market you need to know the market’s weaknesses. Where are some niches that you can possibly exploit? […]
CONTINUE READING >One of the first contributions of modern finance was to categorize returns into alpha and beta. Loosely speaking, beta returns were those that could be passively replicated with a broad market position, and alpha was excess returns above this. That was 60 years ago. Since then, the idea has been extended into “smart beta”, where […]
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