Investing Research Articles

…technical trading is more likely to be successful when applied to small-capitalization and illiquid stocks.

…past research indicates that there may be a good short-term price trade (but watch out for frontrunning) and a good longer-term volatility play for forced resignation of a CEO with replacement by an outsider.

…investors/traders who take the advice of spam stock touts are likely to lose big and fast.

…small capitalization value investing works by systematically buying negative noise and selling positive noise.

…equity hedge funds generate alpha by stock picking, not market timing.

…hedge funds in aggregate perform best around the turn of the year and during odd-numbered years. This seasonality is little different from that of the overall stock market.

…as a corollary to mean reversion of firm profitability, asymmetries in small-big and value-growth stock migrations drive the size effect and the value premium.

…relatively simple clones based on exchange-traded instruments perform well enough to be considered as liquid, transparent, scalable and low-cost alternatives to hedge funds for many fund styles.

…operating earnings forecasts are the best simple indicator of stock market valuation.

…high short interest alone does not predict abnormally low future returns. Rather, high short interest for stocks that are particularly risky to trade (high idiosyncratic volatility) predicts low future returns.