Tag Archives: Wesley Gray

Does Momentum Work with Value Investing?

Does “Momentum” Investing work with “Value” Investing?

See the research paper by Nicholas Barberis below. Barberis concludes that value and momentum are driven by biases that mirror one another. Value is driven by an overreaction problem in which humans are too quick to draw conclusions from a small amount of recent data. In contrast, momentum is driven by an underreaction issue, which is the opposite of verreaction. With underreaction, humans are slow to update their views based on new evidence, which could be due to a systematic behavior bias and/or due to the fact human beings simply have limited cognitive power.

A lot to ponder.  I recommend Quantitative Investing by Wesley Gray. Momentum investing is NOT growth investing (buying price at high multiples to underlying fundamentals), because momenum investing is strictly based on recent price movements not fundamentals.

a model of investor sentiment or under and over reaction

Value and momentum everywhere


and http://blog.alphaarchitect.com/2017/06/06/the-value-momentum-trend-philosophy/#gs.7NtEcq4

Can we control our emotions and emotional responses?


Yes, There are Good Stockpickers (VIC)

Ted Talks

Evidence suggests the professional investors in my sample have significant stock-picking skills. Interestingly, these skilled investors share their profitable ideas with their competition. I test various private information exchange theories in the context of my data and determine that the investors in my sample share ideas to receive constructive feedback, gain access to a broader set of profitable ideas, and attract additional arbitragers to their asset market. The proprietary data I study are from a confidential website where a select group of fundamentals-based hedge fund managers privately share investment ideas. The investors I analyze are not easily defined: they exploit traditional tangible asset valuation discrepancies, such as buying high book-to-market stocks, but spend more time analyzing intrinsic value and special situation investments.

Can Investors Pick Stocks on VIC 01272010-Wesley Gray


Bubble in Safety? http://intrinsicinvesting.com/2016/08/24/wd-40-a-case-study-of-the-bubble-in-safe-stocks/

Quantitative Value Lecture in NYC, Announcements for DEEP VALUE


I am temporarily using this email (jac007csi@gmail so check your spam filters) until I have my bulk email issues sorted out with AOL.com.  If YOU enrolled in the course and did not receive the email mentioned below, then email me at Aldridge56@aol.com and request the course materials for lesson 1.

I sent this book out before so delete if you have it. For those newly enrolled, please place in your research library. Not required reading.   Enrollment is NOW closed!

Attached is a book, M of Safety by Seth Klarman.  Over this course, I will be sending out other books/cases/notes and then asking for volunteers to do more in-depth research on the book, then we will share with the other students.  For example, I ask for one volunteer to critique that book.  Why is it a classic (on Amazon for $2,000) and what lessons for the investor? Is it similar to The Intelligent Investor?  You may wish to wait before volunteering because I will be sending out other projects by early next week and then you may choose a subject/topic of greater interest.

After reviewing Lesson 1 by Friday, we will watch a deep value investor/activist in action. Then for the advanced students, they can advise a company through a case study.  Then we will move onto liquidation values and Net/Nets.  We will circle back later (with the help of a volunteer) to further analyze Behavioral Portfolio Management (a reading from lesson 1).   Does investing in stock with NEGATIVE net worth makes sense?

There are 450 students enrolled. If only 10% volunteer for the twenty or so “special projects” then up to two people will be adequate.

Please consider DROPPING OUT if you are not a fanatic, Phanatic 

NOTICE: I can’t go, but can you or someone you know wish to attend?

Wesley Gray, co author of Quantitative Value Lecture on Wed. Jan. 7th at NYSSA in New York City

Wednesday, January 7, 2015

6:00 p.m.-7:30 p.m. | Presentation

7:30 p.m.-8:00 p.m. | Networking

NYSSA Conference Center
1540 Broadway, Suite 1010, (entrance on 45th Street)
New York, NY 10036

Member $20     Nonmember $40     Student Member $15
($10 surcharge for walk-ins)

Registration Deadline

Wednesday, January 7, 2015

CFA CEs= 1.5

Wesley R. Gray, Ph.D.

Janet Mangano
Chris Goulakos
Michael Livian, CFA

Additional Information
If you are unable to register for this event online, please call (212) 541-4530 for assistance.

Register via Mail/Fax 
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