Investing is simple, but not easy, as Warren Buffett says. And yes — technically the investment process should be as simple as possible. But does it mean that an average investor should not even think about active investment strategies and entirely rely on a passive portfolio? Which strategy is best to follow? And will it work tomorrow?

In this interview, my guest, Jack Vogel from Alpha Architect, talks about many trading topics, including momentum and mean reversion market anomalies.

Continue reading →

The investment strategy described by Gary Antonacci in my previous episode is not only a theoretical model. Today I have a pleasure to present you two separate discussions with people being professional financial advisors in the United States. One thing they have in common is that in their investment process, they use an idea introduced by Gary. What I’ll try to find out is why they got interested in Dual Momentum.

Continue reading →

Imagine that you spend a few minutes a month to manage your investment. All is rule-based, statistically significant, simple and logical. No place for discretionary decisions, no guessing, no gut feeling, no forecasting. And in the long-term, you are almost sure to beat all the actively managed investment funds on the market. Sounds like a scam? Well, everyone should verify everything, but once you do it in this case, you will find out that the name of the presented strategy in this episode, Global Equity Momentum, GEM, is truly a gem.

I am so much impressed by the research work done by Gary Antonacci, guest of this podcast episode. To me, it’s just amazing that he contributed more to the financial industry than so many university researchers out there. He’s a practitioner, rather than a man trying to create another great looking theory, which may seem elegant and appealing but is useless. Fisher Black said once that “The theory is right. It just doesn’t work.” Gary proposed a straightforward yet very effective model based on anomaly which proved to be working for hundreds of years — momentum.

Gary has over 40 years’ experience as an investment professional. After receiving his MBA degree from the Harvard Business School he concentrated on researching and developing innovative investment strategies that have their basis in academic research.

Gary’s innovative research on momentum investing was the first-place winner in 2012 and the second-place winner in 2011 of the prestigious Wagner Awards for Advances in Active Investment Management given annually by the National Association of Active Investment Managers.
Continue reading →