Hosted by Jim O’Shaughnessy, author and legendary investor (Forbes.com), the goal of the What Works on Wall Street podcast is to make the sometimes arcane-sounding language of the investment world more simple and approachable for our listeners. In each episode, Jim talks openly with professional investors (portfolio managers, analysts, researchers, authors) who are willing to share what they’ve learned with you. Learn more and stay up-to-date at osam.com/podcast
The Factor Archives: Value (EP.11)24/02/2020 Duration: 35min
Price is one of the most predictive determinants of future alpha and investors have recognized this since the first value fund was founded in 1779. While market environments and the methods of equity valuation have changed, the concept of purchasing stocks at discounted prices has persisted for centuries.
The Factor Archives: Shareholder Yield (EP.10)18/12/2019 Duration: 23min
Although buybacks are constantly in the news, they have benefitted investors for centuries. In this episode, Jim and Jamie discuss the relationship between capital allocation and returns, 17th century dividends, 18th century buybacks, and a time when government authorities mandated buyback programs in the U.S.
The Factor Archives: Momentum (EP.09)14/12/2019 Duration: 54min
Momentum is rooted in human nature and behavioral biases. This episode is a little different than other WWoWS episodes, as it was originally for guest Jamie Catherwood’s own history podcast, of which Jim was the first guest. However, enjoy this dive into the first ever book on behavioral finance. Find Jamie’s corresponding article here: https://osam.com/Commentary/the-factor-archives-momentum
ESG The Right Way (EP.08)13/12/2019 Duration: 41min
Jim O’Shaughnessy and OSAM PM Travis Fairchild discuss Travis’ recent paper on ESG. The discussion focuses on the right and wrong approaches to ESG, the Canvas platform, and how factor investing ties into ESG.
The Factor Archives: A History of Factor Investing (EP.07)20/11/2019 Duration: 23min
While they may not have been known by the same names, many modern investment factors have historical roots stretching back centuries.
Factors from Scratch (EP.06)20/09/2018 Duration: 34min
A look back, and forward, at how, when, and why factors work
Negative Equity, Veiled Value, and the Erosion of Price-to-Book (EP.05)08/05/2018 Duration: 32min
The price-to-book ratio has a problem. Accounting distortions are causing record numbers of U.S. companies to report negative book value and more and more cheap companies to be defined as expensive growth companies (Veiled Value Stocks). Join us on this “What Works on Wall Street” podcast to learn more.
A Returns-Based Approach for Allocating U.S. Microcap into Equities Portfolios (EP.04)01/12/2017 Duration: 23min
“Traditional” asset allocation favors capacity-based frameworks that are overly-reliant on flawed market cap-weighted indexes. Also, that approach fails to make adjustments for investor risk tolerance or plan size. Investors who use a returns-based approach instead — adding Micro and Small Cap into the equities mix — can expect to see stronger returns and lower volatility. Join us on this “What Works on Wall Street” podcast to learn more...
Finding the Factor Alpha in REITs (EP.03)10/10/2017 Duration: 26min
According to our research, the efficacy of factor signals in real estate investing has largely been upstaged by the factor revolution in the equities market. In fact, the public real estate market is uniquely inefficient and a fertile ground for active, factor-based investing…
Microcaps’ Factor Spreads, Structural Biases, and the Institutional Imperative (EP.02)09/08/2017 Duration: 29min
Many investors readily agree that alpha is scarce. It is hard to find, always in great demand, and requires skill to extract. The eclectic microcap universe provides a disparate group of continually evolving and devolving businesses with structural features that remain persistently attractive for investors. Join us on this “What Works on Wall Street” podcast to learn more…
Factor Crowding, Cobras, and Other Market Hyperboles (EP.01)25/07/2017 Duration: 31min
After reading as many as 18 different WSJ articles on the subject, it’s understandable why investors might be up in arms about the alleged perils of factor crowding. We hope this discussion allays some of those concerns. Join us on this “What Works on Wall Street” podcast to learn more…