Equal Weighting Can Beat the Market

Long term data suggest that investors can beat the market by holding the same stocks as those included in the S&P 500, if given equal weighting. This according to Validea CEO John Reese in last week’s Globe and Mail. Since stocks in the S&P 500 index are weighted according to market capitalization (larger proportions represented […]

Show Me the Money: Six Cash-Rich Stocks

A company’s free cash flow, defined as the amount of money generated from operations less capital expenditures, offers investors a clue as to how well a company can sustain its operations and, subsequently, build wealth for shareholders,” writes Validea CEO John Reese in a recent article for TheStreet. Reese outlines some of the cash flow-related […]

Investing Like Buffett and Soros Could be Within Reach

New research shows that “ordinary” investors may be able to emulate the extraordinary tactics of legends such as Warren Buffett or George Soros by using factor-based strategies. This according to Validea CEO John Reese in last week’s issue of  The Globe and Mail. The study, conducted by AQR Capital Management, compared returns for “superstar investors […]

Quant Strategies Continue to Evolve

While the financial crisis of 2007 spurred a lot of questions regarding the role that quantitative investment strategies played in the market’s drop, these strategies continue to evolve, writes Validea CEO John Reese in this week’s Forbes. Reese gives an overview of the evolution of quant investing, which has been used for decades, and the […]

The Frailty of Market Predictions

The unexpected Brexit vote and Donald Trump’s presidential election victory both occurred despite overwhelming predictions to the contrary, writes John Reese in a recent article for The Globe and Mail. The CEO of Validea illustrates how forecasting in the world of investing is “equally fraught with unpredictable outcomes despite seemingly reasonable expectations.” Reese supports his […]

Stock Picks for All Ages

Reeling in the millennial set is a challenge faced by many U.S. businesses, and the world of investing doesn’t seem to be appealing to this group of tech-focused, well-educated consumers. In this week’s Nasdaq, Validea CEO John Reese explains how Barron’s has created a list of 50 stocks they feel millennials care most about to […]

Greenblatt’s Magic Formula-Worthy Picks

Most investors lack patience and don’t understand underperformance, which motivates them to abandon funds when performance dips—precisely the time they shouldn’t, says Joel Greenblatt, co-founder of Gotham Asset Management. In a recent Forbes article, Validea CEO John Reese explains the fundamentals of Greenblatt’s “Magic Formula,” which uses return-on-capital and earnings yield to identify good companies […]

Emerging Markets on The Rise

After a run of disappointing performance, emerging market stocks are perking up, says Validea CEO John Reese in a recent article for Nasdaq. Since January, this class of securities has gained more than 34% and the upward trend is expected to continue. Reese advises, however, that while the trend is a welcome change for yield-starved […]