Research and Review

Momentum Investing: Ride Winners and Cut Losers.

Momentum Investing: Ride Winners and Cut Losers. D. Karki |13th May, 2021| Momentum investors ride the wave: The most basic momentum strategy buys stocks that have performed well in the past. This strategy is very different from a pure value strategy (which exclusively focuses on buying cheap stocks). They believe winners keep winning and losers […]
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Short Selling + Insider Selling = Profitable Strategy?

When Short Sellers and Corporate Insiders Agree on Stock Pricing -Chune Young Chung, Hong Kee Sul, and Kainan Wang -Journal of Portfolio Management -A version of this paper can be found here What are the research questions? This study uses a long and comprehensive time series covering 1977-2014, with just under 180,000 quarterly observations for […]
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Value Investing? Really?

Article by Mahim Dhungel Software Engineer, Quant Education: Maharashtra Institute of Technology, Pune (Published on ShareSansar, Friday April 9, 2021) For those of you who preach that value investing is THE WAY for a retail investor to make money, the first question I ask is “Why don’t you tell us what the future cash flow […]
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Is the MA Crossover Strategy Even Profitable?

– Bivek Neupane Thu, Apr 8, 2021 on ShareSansar Today we shall be doing a fun exercise. We shall be questioning one of the most well-known trading strategies: the infamous moving average crossover. In this article, I am not going to go through the details of what a MA crossover strategy is. If you do […]
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A Review of Benjamin Graham’s Famous Value Investing Strategy: “Net-Nets”

Benjamin Graham, often considered a strong candidate for the “the father of quantitative value investing“, developed an investment strategy that involved purchasing securities for less than their “current-asset value”, “a rough index of the liquidating value”. We uncovered ten research papers that examined the returns achieved by investing in such securities which were conducted over a number of decades and across […]
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Why investors often make bad decisions

Introduction: In rational world investors make decisions to maximize their risk-return trade-off. They are assumed rational and able to overcome tendencies. However, the modern theory of investors’ decision-making suggests that investors do not always act rationally while making an investment decision (Bashir et al., 2013). When it comes to money and investing, they deal with […]
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