This is a new research paper published on January 22nd 2015 that studies the return of stocks based upon the size (defined in multiple ways). What was done differently than other studies, was that the authors used a Quality and Junk variable to apply to the data. The result was that smaller firms outperformed larger firms in the stock market if the portfolio was controlled with the QMJ (Quality Minus Junk) factor. Meaning that a lot of the smaller companies were “junk” but the ones that were of quality outperformed the market. The Authors: Clifford S. Asness – AQR Capital...
Smart Links from February 9th 2014
Word Science of Social Media is an infographic created by ShortStack which analyses the titles for highest social media sharing. The infographic is broken down by Twitter, Facebook and Blog and displays the words in title that get that most shares. A good read if you want to increase your social media shares. Value Investing goes Back to the Future discusses the apparent change in thinking of value investors (according to Barron’s Conway). In recent years value investors were concerned with bankruptcy risk and book values but it appears that might have changed to forward-looking metrics like p/e ratios....