Excess Returns

FIND OUT MORE ABOUT VALIDEA

FOLLOW OUR BLOG

FIND OUT MORE ABOUT VALIDEA CAPITAL

FOLLOW JACK

LinkedIn: https://www.linkedin.com/in/jack-forehand-8015094

FOLLOW JUSTIN

Alpha Architect Home - Alpha Architect

An In Depth Look at Momentum Investing and Trend Following with Jack Vogel Feb 04, 2021

Show notes

There is perhaps no investment factor with more long-term data to support it than momentum. But despite that, its real world usage lags far behind other factors like value. Part of the reason for this is the fact that momentum can be much less intuitive for investors. It is easy for investors to understand why they should buy a stock that trades at a discounted valuation, but it is much more difficult to understand why they should invest in a stock solely because its price has gone up.

In this episode, we take a deep dive into momentum investing with Alpha Architect's Jack Vogel. We discuss why momentum works, how it is measured, and some potential ways to enhance the returns of momentum strategies. We also cover the pros and cons of trend following and why the strategy can be so difficult to implement in the real world.

We hope you enjoy the discussion.

FIND OUT MORE ABOUT ALPHA ARCHITECT

FOLLOW JACK ON TWITTER

https://twitter.com/jvogs02

ABOUT THE PODCAST

SEE LATEST EPISODES

FIND OUT MORE ABOUT VALIDEA

FOLLOW OUR BLOG

FIND OUT MORE ABOUT VALIDEA CAPITAL

FOLLOW JACK

LinkedIn: https://www.linkedin.com/in/jack-forehand-8015094

FOLLOW JUSTIN

The Impact of Intangible Assets on Value Investing Jan 31, 2021

Show notes

Our economy is changing. Gone are the days where the biggest companies require substantial physical assets to operate and grow their businesses. Most of the companies that dominate our economy today rely on assets like technology, brand value, and patents to power their businesses. In this episode, we look at the impact of intangible assets on value investing and investment strategies that rely on fundamentals. We discuss the challenges of valuing intangible assets, and the different approaches that can be used to do it. We also tackle the debate over whether intangible assets should be included on standard financial statements.

We hope you enjoy the discussion

ABOUT THE PODCAST

SEE LATEST EPISODES

FIND OUT MORE ABOUT VALIDEA

FOLLOW OUR BLOG

FIND OUT MORE ABOUT VALIDEA CAPITAL

FOLLOW JACK

LinkedIn: https://www.linkedin.com/in/jack-forehand-8015094

FOLLOW JUSTIN

https://twitter.com/verdadcap_quant

Interview: Replicating Private Equity Returns In Public Markets with Verdad’s Brian Chingono Jan 28, 2021

Show notes

There are many misconceptions about private equity. Most investors see it as a domain where high net worth investors and institutions earn returns that can't be achieved via public markets. Investors typically also view the success of private equity as the result of the ability of private equity firms to go in and make operational changes to businesses to unlock their true potential. But it turns out the reality is much less exciting than that. As is the case in public market investing, it turns out that fundamentals and valuation are a large driver of returns.

In this episode, we speak to Brian Chingono of Verdad Capital about the true drivers of private equity returns, and how those returns can be replicated using a systematic strategy in public markets. We also cover some other interesting areas of Verdad's research, including how high yield spreads can be used to identify opportunities for value stocks and whether bond upgrades and downgrades can be predicted via machine learning.

We hope you enjoy the discussion.

FIND OUT MORE ABOUT VERDAD

Verdad (verdadcap.com)

FOLLOW BRIAN ON TWITTER

ABOUT THE PODCAST

SEE LATEST EPISODES

FIND OUT MORE ABOUT VALIDEA

FOLLOW OUR BLOG

FIND OUT MORE ABOUT VALIDEA CAPITAL

FOLLOW JACK

LinkedIn: https://www.linkedin.com/in/jack-forehand-8015094

FOLLOW JUSTIN

Examining the Arguments Against Value Investing Jan 24, 2021

Show notes

After a decade of struggle, the past six months have finally given value investors reasons for optimism. Although the recent outperformance pales in comparison to the underperformance over the course of the decade, the fact that performance has improved, coupled with the arguments that a move toward increased fiscal stimulus may lead to a higher inflationary environment that would benefit value, has many value investors, including us, thinking we may have finally reached the turning point. And market experts have also jumped on the value train, with many predicting a strong year for value.

But times like these are our most dangerous ones as investors. When we become convinced we are right, it becomes easy to miss the arguments for the other side. So in this episode we decided to challenge ourselves and to try to make the best case we can against value investing.

We hope you enjoy the discussion.

ABOUT THE PODCAST

SEE LATEST EPISODES

FIND OUT MORE ABOUT VALIDEA

FOLLOW OUR BLOG

FIND OUT MORE ABOUT VALIDEA CAPITAL

FOLLOW JACK

LinkedIn: https://www.linkedin.com/in/jack-forehand-8015094

FOLLOW JUSTIN

Why Dividend Investing May Be Overrated Jan 17, 2021

Show notes

Dividend based investing strategies are very popular among investors. The ability to receive regular cash payments from the equities they own and a belief that dividend paying stocks outperform the market are both major drivers of this popularity. But this preference for dividend stocks often exceeds the reality of the benefits they provide. In this episode, we take a look at the facts behind dividend investing. We look at how dividend-paying stocks perform over time and why the source of their outperformance may be different than many investors think. We also look at alternative ways to accomplish the goals of strategies based around dividends.

ABOUT THE PODCAST

SEE LATEST EPISODES

FIND OUT MORE ABOUT VALIDEA

FOLLOW OUR BLOG

FIND OUT MORE ABOUT VALIDEA CAPITAL

FOLLOW JACK

LinkedIn: https://www.linkedin.com/in/jack-forehand-8015094

FOLLOW JUSTIN

Breaking Down the Investment Strategy of Peter Lynch Jan 10, 2021

Show notes

Peter Lynch is one of the most successful mutual fund managers of all time. Lynch guided Fidelity Investment's Magellan Fund to a 29.2 percent average annual return from 1977 until his retirement in 1990, almost doubling the S&P 500's 15.8 percent yearly return over that time. And he did it with an approach that is very unique among history's most successful investors.

In its paper Superstar Investors, AQR tried to use factors explain the historical performance of some of the best investors of all time, and Lynch's performance was the most difficult to explain using that framework.

In this episode, we look at Lynch's approach to investing and our quantitative strategy based on him, which we extracted from his book One Up On Wall Street. We also look at why his strategy is so difficult to quantify.

We hope you enjoy the discussion.

ABOUT THE PODCAST

SEE LATEST EPISODES

FIND OUT MORE ABOUT VALIDEA

FOLLOW OUR BLOG

FIND OUT MORE ABOUT VALIDEA CAPITAL

FOLLOW JACK

LinkedIn: https://www.linkedin.com/in/jack-forehand-8015094

FOLLOW JUSTIN

The Importance of Expectations in Investing Jan 03, 2021

Show notes

There is a common misconception that a good company is always a good investment. But that sometimes isn't the case. The reason for that comes down to the role that expectations play in investing. Companies with good fundamentals typically have high expectations built into their stock price, while companies with poor fundamentals typically have low expectations embedded in their price. But either way, the key for investors is identifying companies where there is a gap between expectations and reality. In this episode, we look at the importance of expectations in investing and how investors can look at this issue. We also look at some systematic ways to take advantage of the differences between expectations and reality. We hope you enjoy the discussion.

ABOUT THE PODCAST

SEE LATEST EPISODES

FIND OUT MORE ABOUT VALIDEA

FOLLOW OUR BLOG

FIND OUT MORE ABOUT VALIDEA CAPITAL

FOLLOW JACK

LinkedIn: https://www.linkedin.com/in/jack-forehand-8015094

FOLLOW JUSTIN

The Biggest Lessons From Our Five Most Popular Interviews of 2020 Dec 27, 2020

Show notes

When we started our podcast late last year, we were hoping we could create something that would be educational and informative for people who follow our content. We were hoping we could take some of the lessons we have learned in running quant models over the past decade and share them with other investors who are looking to learn and improve. But one of the biggest surprises for us in the first year of the podcast, though, is how much we have learned ourselves.

We have been fortunate to interview some of the smartest investors we know, and each interview has taught us something new and expanded our understanding of some complex and interesting concepts. To bring 2020 to a close, we took a look at our five most popular interviews of the year and found the most important lesson we learned from each of them. We bring all those lessons together in our final episode of the year.

We would like to thank everyone who took the time to listen to us this year. We hope you have a happy to safe New Year.

ABOUT THE PODCAST

SEE LATEST EPISODES

FIND OUT MORE ABOUT VALIDEA

FOLLOW OUR BLOG

FIND OUT MORE ABOUT VALIDEA CAPITAL

FOLLOW JACK

LinkedIn: https://www.linkedin.com/in/jack-forehand-8015094

FOLLOW JUSTIN

Eight Timeless Lessons All Investors Can Learn From Warren Buffett Dec 20, 2020

Show notes

No investor can match the combination of Warren Buffett's annual returns and the period of time he has been able to sustain them. Buffett has generated those returns in a variety of ways, many of which your average investor could never copy. But Buffett's greatest contribution to the investing world likely isn't his returns or his approach to picking stocks. Buffett's greatest contribution has been his willingness to help all of us become better investors. Through his writings, his annual meetings, and his general willingness to share his knowledge, Buffett has probably contributed more to educating other investors than anyone in history. In this episode, we look at some of the biggest lessons investors can learn from Buffett.

We hope you enjoy the discussion.

ABOUT THE PODCAST

SEE LATEST EPISODES

FIND OUT MORE ABOUT VALIDEA

FOLLOW OUR BLOG

FIND OUT MORE ABOUT VALIDEA CAPITAL

FOLLOW JACK