Uncovering Symbiosis: Emerging Markets and Factor Investing July 03, 2019 By Jason Hsu Excerpt: Convention says that emerging markets pose an array of challenges for factor investing to achieve excess returns. China serves up several of its own, from mispricing to limited data to a mashup of market noise. That, in large part, may have…
Even before the recent trade war, the U.S. president had a hand in China’s market, by way of “concept” stocks. They are just one of the quirks found in retail heavy emerging markets like China, whose inefficiencies—and alpha opportunity—are traced to non-professionals trading as much for entertainment as for profit. In the research below, we investigate the evolution of retail participation in China A shares, the remarkable inefficiencies that creates, and the implications for professional investors.
In this Q&A, Phillip Wool walks us through the world of factors and highlights the benefits of a multi-factor approach.
How China’s censorship on trade war throws off the algos MarketWatch May 15, 2019 By Sunny Oh Excerpt: Wall Street uses social media algorithms to track sentiment of Chinese individual investors Quantitative investors say censorship around the chief source of China’s equity tumble highlights the limitations of algorithms used to sift through millions of social…
Credit Suisse and Rayliant team up for China quant launch Risk.net April 24, 2019 By Narayanan Somasundaram and Kate Lin Excerpt: Firms want to tap investors’ zeal for systematic strategies in A shares Credit Suisse and quant advisory firm Rayliant have launched a new index to tap growing offshore demand for quant strategies in China’s…
In this Q&A, Phillip Wool talks about the challenges of EM investing and how a localized, systematic approach can help to unlock a rich source of sustainable alpha.
ESG is more than ‘good karma’ and analysis can help pick a winner Financial Times / FTfm February 28, 2019 By Jason Hsu (article contribution to FT) Excerpt: Better returns can be identified if investors focus on the cost of capital ESG investing has grown in popularity in the past five years. Investment based on…
Ahead of the curve: Hold faith in Chinese equities Investment & Pensions Europe (IPE) February 2019 By Jason Hsu and Phillip Wool (article contribution to IPE) https://www.ipe.com/analysis/ahead-of-the-curve/ Excerpt: Exposure to Chinese equities presents opportunities in both market beta and alpha For emerging markets stocks, 2018 was a challenging year. Mainland Chinese stocks – the ‘A…
ESG investing has become more in vogue in the past five years. Part of this may be driven by an on-faith belief, supported by shallow anecdotal evidence, that investing in ethical companies (high ESG companies) must lead to better investment outcome. You could call this belief the “good karma” principal in investing.
Human beings are wired the same way wherever they come from, and that means they’re likely to make the same mistakes when it comes to trading stocks.