Great Pages: O’Shaughnessy On Models vs. Humans

Can a single page of a book change your investment life? We believe it can. Periodically, we highlight some of the Great Pages that have had a great impact on our investment philosophy. Today, we cheat just a bit, looking at two pages in James O’Shaughnessy’s classic “What Works on Wall Street”. O’Shaughnessy talks about why models are better at predicting outcomes than humans are.

Continue reading

The Best Sector For The Long Haul Isn’t What You Might Think

Every other issue of the Validea Hot List newsletter examines one the investing greats behind John P. Reese’s computerized Guru Strategies. This latest issue looks at the James O’Shaughnessy’s research into the best sector for the long term.

Continue reading

OSAM: Microcaps A Better Opportunity Than PE

Over the past decade or so, investors — particularly institutional investors — have focused more and more on private equity as a way to get exposure to small, potentially high-growth companies. But in a recent research paper, O’Shaughnessy Asset Management’s Chris Meredith and Patrick O’Shaughnessy explain why microcap equities in many cases are a more attractive alternative to private equity.

Continue reading

Take It From The Gurus: Boring Is Beautiful

In a recent article for Canada’s Globe and Mail, Validea CEO John Reese says that when it comes to investing, boring is beautiful.

Continue reading

O’Shaughnessy on Investor Psychology, Bond Market Trouble, and Why Value Wins

In a wide-ranging interview with Barry Ritholtz on Bloomberg View, quantitative investing guru James O’Shaughnessy recently talked about why human beings are such inferior prognosticators compared to computer models, what that means for investors, why stocks may well be safer than bonds over the long run, and why holding period duration is so critical.

Continue reading

O’Shaughnessy: Keep It Simple With Shareholder Yield

You don’t need complicated strategies to beat the market. That’s what James O’Shaughnessy says in a recent column discussing shareholder yield (dividend yield plus buyback yield).
Continue reading

O’Shaughnessy: Data Says Stay Away From Glamour

Investors are continually attracted tho “glamour stocks” — those popular, flashy picks that are always being talked about. But quantitative investing guru James O’Shaughnessy says history shows those exciting stocks usually lead to big trouble.

Continue reading