Larry Swedroe on a study showing why performance chasing rarely succeeds. There is a considerable body of evidence demonstrating that the post-hire performance of active managers tends to be disappointing relative to their pre-hire performance. Specifically, managers’ performance tends to regress toward zero after adjusting for expenses, risk, exposure to common factors and survivorship bias. …Read More.
Larry Swedroe looks at recent research into payout policies and the long-run drivers of expected equity returns. In their famous 1961 paper, “Dividend Policy, Growth, and the Valuation of Shares,” Merton Miller and Franco Modigliani theorized that investors should be indifferent about whether they receive distributions via dividends or buybacks, as well as how they …Read More.
Tim Maurer on why finding our path to contentment may have little to do with the dichotomy set up between the pursuit of less and the pursuit of more, scarcity versus acquisition. Having the privilege of walking through life with people vocationally, aiding in the acquisition, maintenance and dispossession of earthly resources as a financial …Read More.
Larry Swedroe unpacks the research and explores the benefits of tax-aware, long/short funds. Among the “smart beta” strategies that recently have become popular are funds that go long securities with favorable characteristics and short those with unfavorable characteristics. For example, to capture the value premium, a fund would go long value stocks and short growth …Read More.