A New Super Factor: the Investment Case for Knowledge

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We’re pleased to share a new white paper on the market anomaly that rose above value, size, quality, low volatility and momentum factors. Written by Bryce Coward, CFA, the study details the results of first market test of the Knowledge Effect, the tendency of highly innovative companies to deliver excess returns. Download the white paper here: A New Super Factor: The […]

Who Reads Financial Reports? Nobody!

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For several years I have argued, based on comprehensive statistical evidence, that corporate financial reports―quarterly and annual statements―have lost most of their relevance and usefulness to investors. Corporate earnings, in particular, are no longer a reliable measure of enterprise value change, nor are they indicators of future performance and growth. In fact, as I have […]

Tale of the Tape: Equity Investors More Concerned About Rising Inflation Than Slowing Growth

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We calculate statistics for all developed and emerging equity markets around the world. For our mid/large cap indexes, we take the top 85% of all stocks in a given region or country and convert all prices into US Dollars. These Knowledge Leaders Selection Universe (KLSU) Indexes form the basis of our investment products. By calculating […]

“Bubble-Like Stock Valuations Miss $3.4 Trillion in Hidden Assets” – or Why Intangibles Matter

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This week, in Bubble-Like Stock Valuations Miss $3.4 Trillion in Hidden Assets, Bloomberg detailed how traditional accounting can make a company’s fundamentals “look a lot worse than they are.” In the article, New York University’s Professor Baruch Lev weighs in. “You get numbers which are highly inflated for some companies and are understated for other […]

Semiconductor Leadership Highlights the Rotation Into Value Stocks

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Semiconductor and semiconductor capital equipment stocks have been stellar performers lately, a trend we have been a bit slow to recognize. So, I decided to do a deep dive on semis and semiconductor capital equipment stocks to see if there is opportunity left to capture. Indeed, when I combine the developed and emerging market industry […]

Customer Franchise, the Most Valuable Asset: Here is How to Value It

“Subscribers Are the New, New Thing in Business” declared The Economist (April 11, 2018). The magazine says that “Subscription models are seen by many investors and executives as the holy grail, because they promise a recurring stream of revenue…. The attractions of subscription businesses are obvious. Firms can predict the future better and build deeper relationships with […]