• Bounded Rationality:
    Tapping Investor Behavior to Source Alpha

    February 2017
    Tapping Investor Behavior to Source Alpha

    Behavioral biases influence even the most expert investors, and often create a predictable pattern of how future company expectations could evolve.


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  • Minimum-Variance Portfolio Composition

    Clarke, de Silva, Thorley
    Minimum Variance Portfolio Composition

    The ability to create and optimize an equity portfolio with the lowest possible variance has appealed to investors over time. Minimum-variance strategies address an increased appreciation for risk management on the heels of the Financial Crisis, all the while inclusive of the fact that low-volatility stocks tend to have returns that meet or exceed the broad equity market from which they are selected.

  • The New Core Allocation:
    Long/Short Equity

    Core Allocation Long Short Equity

    With equity valuations at elevated levels, subdued economic growth due to changing demographics and stubbornly low productivity gains, as well as a bleak outlook for fixed income, advisors are challenged to rethink foundational portfolio elements of investor portfolios—which means seeking out strategies that bolster the core going forward.

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  • The Problem of Uncertainty:
    Trading Model Ensembling Techniques

    In 1962, Ed Thorp, famed hedge fund manager and mathematics professor, wrote the book Beat the Dealer in which he proved that it was mathematically possible to overcome house odds in blackjack by properly “counting cards.”

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