Robert (Bob) Rodriguez, former managing partner at asset-management firm FPA, shared insights and opinions regarding various market-related topics in an interview recently published in Advisor Perspectives. Here are some highlights: On mean reversion: Rodriguez emphasizes that a mean reversion will occur. He shares his belief that the “standards in the industry are being compromised; monetary policy […]
A smart-beta pioneer, Rob Arnott of Research Affiliates warns that these investment vehicles are in a bubble, says an article in last week’s Bloomberg. Smart-beta ETFs organize securities based on quantitative factors like volatility or “cheapness”, and the article explains that Arnott’s position is nothing new (he publicly battled with Cliff Asness on the topic […]
Chuck Royce, small cap stock picker and pioneer, recently sat down with Consuelo Mack of WealthTrack to discuss his thoughts on the recent slump of value vs. growth stocks as well as his firm’s process for sourcing new investment ideas. Royce, who has been in the investment management business since 1972, explains that small cap […]
Rob Arnott and Christopher Brightman of Research Affiliates recently discussed the allocation and performance of PIMCO All Asset Fund, which goes outside mainstream investments into what they describe as the Third Pillar. Arnott explains that a three-year bear market in Third Pillar investments has impacted investors’ outcomes and outlooks. Although the fund’s 7% loss from […]
After a lengthy period of underperformance, value stocks have started to rebound. And in a recent piece for Proactive Advisor, Validea CEO John P. Reese says they are now poised to outperform their pricier growth stock counterparts. Reese talks about some of the reasons value stocks have struggled over the past decade, saying that investors […]
In an excellent recent interview with The Investors Podcast, quantitative guru Tobias Carlisle talks about the powerful force of mean reversion in the stock market and economy, and offers a number of insights about quantitative investment strategies.
Mean reversion is a key part of many investors’ strategies, and right now some are pointing to above-the-mean cyclically-adjusted price/earnings ratios as a sign that stocks are overvalued. But Morningstar Vice President of Research John Rekenthaler says mean reversion isn’t as simple as it may seem. If you take the current long-term mean and see where stocks […]