Going Local: Developing a Quant Approach Specific to Emerging Markets
In this Q&A, Phillip Wool explains how local fundamental insights work to enhance the standard quant investing approach.
Don’t Quarantine Your Portfolio: Chinese Stocks’ Reaction to Coronavirus
Not all investors are immune to fears caused by the coronavirus, and the market’s reaction need not be rational. Our CIO Jason Hsu and Head of Investment Solutions Phillip Wool share their analysis on Chinese stocks’ response in the initial weeks of the outbreak.
Searching for the Smart Money in China A Shares
The experience of some of the most efficient investors in China’s A shares lends a view into unlocking alpha in one of the world’s most inefficient markets.
Where Retail Rules: Buying Into China’s Alpha Opportunity
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.
Adding Things Up: Piecing Together a Multi-Factor Quant Portfolio
In this Q&A, Phillip Wool walks us through the world of factors and highlights the benefits of a multi-factor approach.
Making the Case for Localized Quant Investing in Emerging Markets
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 in Need: Beyond the ‘Good Karma’ Lens
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.
Using a Systematic Approach to Outperform in Markets Dominated by Retail Investors
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.
Illiquidity and Factor Returns
Factor returns are often reported as the average of factor returns among large stocks and the factor returns among small stocks. However, factor returns among small, illiquid stocks are significantly higher than those among larger, more liquid stocks, suggesting that the factor returns in the literature are exaggerated and cannot be implemented with substantial assets.
Outperformance Through Investing in ESG in Need
To maximize social value and investor returns, it is optimal to fund those ESG firms that are most in need of capital.