Mutual funds following factor investing strategies based on equity asset pricing anomalies, such as the small cap, value, and momentum effects, earn significantly higher alphas than traditional actively managed mutual funds. A buy-and-hold strategy for a random factor fund yields 110 basis...

Strategic partnerships can help companies improve their business models and profitability. The main advantages of strategic partnerships relate to their flexibility around financial commitments, focus and time: they are often less capital intensive than an M&A pathway; they can be focused on a...

The idea that superior knowledge is required to drive financial outperformance runs counter to some of the most pervasive theoretical frameworks used by investors today. The Efficient Market Hypothesis and the Capital Asset Pricing Model, for example, posit that capital markets are efficient and...

Hedge funds are fundamentally exposed to equity volatility, skewness, and kurtosis risks basedon the systematic pattern and significant spread in alphas from the existing models that do notcontrol for the higher-moment risks. The spread and pattern in alphas do not disappear withbootstrap...

Hedge funds are fundamentally exposed to equity volatility, skewness, and kurtosis risks based on the systematic pattern and significant spread in alphas from the existing models that do not control for the higher-moment risks. The spread and pattern in alphas do not disappear with bootstrap...

Hedge funds are fundamentally exposed to equity volatility, skewness, and kurtosis risks based on the systematic pattern and significant spread in alphas from the existing models that do not control for the higher-moment risks. The spread and pattern in alphas do not disappear with bootstrap...

In this paper, we revisit the question whether the Fama-French factors are manifestations of distress risk premiums. To this end, we develop new tests specifically aimed at dissecting the Fama-French factor returns from a distress risk premium. While we find that small-cap and value exposures...