Knowledge Leaders

Quarterly Update & Outlook: Gavekal Knowledge Leaders Indexes August 03, 2015

Posted by Steven Vannelli, CFA in Knowledge Leaders

We’re pleased to present our first quarterly commentary on the Gavekal Knowledge Leaders Indexes, the intellectual property behind our new strategic beta products. As a data driven firm, we spend significant time working with data, from sourcing it to scrubbing it to identify Knowledge Leaders,…

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Knowledge Leaders Continued Their Outperformance In May June 03, 2015

Posted by Bryce Coward, CFA in Knowledge Leaders

Highly innovative companies outperformed again in May, continuing a streak that has been going on for quite awhile now. Whether in the developed markets or emerging markets, Knowledge Leaders have outperformed the broad DM and EM benchmarks over the last month, quarter, YTD, 1-year and…

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Knowledge Leaders Are Outperforming YTD May 27, 2015

Posted by Knowledge Leaders Team in Knowledge Leaders

In our white paper “The Knowledge Effect: Excess Returns Of Highly Innovative Companies”, we identified a stock market pricing anomaly in highly innovative companies.  The tendency of stocks of highly innovative companies to experience excess returns can be traced back to two main factors: A…

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The Knowledge Effect Leads to Excess Stock Returns May 08, 2015

Posted by Knowledge Leaders Team in Knowledge Leaders, News

In a new white paper released today, we identify a stock market anomaly. The Knowledge Effect is the tendency of highly innovative companies to deliver excess returns for investors. Academic researchers first discovered an association between a firm’s knowledge capital and its stock performance. Our…

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Two Desirable Characteristics Of Innovative Industries May 06, 2015

Posted by Knowledge Leaders Team in Knowledge Leaders

The most innovative companies in the world tend to exhibit two highly desirable characteristics: high return on invested capital (ROIC) and low long-term debt as a percentage of total capital. There are fundamental reasons for these characteristics. First, innovative companies are very profitable because they…

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