We recently visited Professor Baruch Lev in his office at NYU Stern School of Business to discuss his new book, The End of Accounting. Our long-time readers will be familiar with Lev’s work, which forms the basis for our Knowledge Leaders investment strategy. In his…
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This quarter, we explore the hypothesis that the modern era of Ricardian growth has ended. We further explore what this means for asset allocation and which types of stocks in particular should do well in this Ricardian hangover. Download our First Quarter 2016 Strategy &…
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Portfolio Manager Steve Vannelli will host two quarterly conference calls to update investors on recent performance and outlook for the Gavekal Knowledge Leaders investment products. A US mutual fund call will take place tomorrow, January 21 at 4:15pm ET. On Friday, January 22 at 2pm…
Read MoreThe Gavekal Knowledge Leaders Indexes continue to outperform benchmarks and actively managed funds. You’re invited to dial in to today’s quarterly index conference call. Steve Vannelli will discuss recent performance and updates from September’s rebalance. Call details: Add Event Today, Oct. 15 at 4:15pm ET Dial-in: 877.515.8156 …
Read MoreThere is a new battlefront in the money management business. New smart beta ETFs are entering the market to compete against actively managed mutual funds. These funds will be formidable competition, offering the possibility of superior performance — traditionally the province only of actively managed…
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After the recent correction, many investors are asking how to respond in their portfolios. I’m recommending clients hold on to equity exposure, even consider increasing it. Below, I run through my case. Reason 1: Valuations For the first time since 1956, the dividend yield on…
Read MoreLast week, Steve Vannelli was a guest on Killer Innovations Radio, a show about ideas, creativity and innovation — where leading innovators discuss how to go from ideas to breakthroughs. He discussed a few companies that make the cut as Knowledge Leaders, some on their way out…
Read MoreWe’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,…
Read MoreA rich academic history suggests equity returns can be explained by risk exposures, or factors. In our first white paper, we identified the Knowledge Effect, the tendency of highly innovative companies to experience excess returns. In this second report, we detail how we create the…
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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…
Read MoreIn 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…
Read MoreThe 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…
Read MoreThe trend toward knowledge investments and away from traditional investments in fixed assets such as equipment and structures continued in the 1Q in the US. Investment in intangible property products now account 4.1% of GDP.
Read MoreAfter our recent call, we received an insightful question about how we view research and development (R&D) because surely not all R&D is productive and profitable?
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