Exposure to value, size and momentum factors explains the excess returns from alternative index strategies.
Sector rotation is an extremely difficult way to earn excess returns, even when done by experts.
As more money flows into an investment category, prices rise and the scope for excess returns diminishes.
They are constantly on the lookout for markets that are inefficient or areas that offer excess returns.
They could book the excess returns as profit, making the firms look good and generating higher compensation for the managers.
All of which pretty much shoots down the contention that there are those inefficient markets in which excess returns can be gained.
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In other words his approach exploits most of the good features of leverage (excess returns) while minimizing the bad features (volatility drag).
The average excess returns were -9.6% and 6.2%, respectively, according to Tortoriello.
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Indexes have morphed from their market-matching beta roots to complex trading- and securities-weighting strategies that are supposed to add excess returns, known as alpha.
Diversification is a valid investment axiom, but when trying to achieve excess returns or alpha, there is such thing as too much of a good thing.
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First, actively-managed mutual funds cannot earn excess returns over index funds because in aggregate they earn the same as index funds, less the difference in cost.
Most important, it will have to wean its clients off the notion that they can both enjoy excess returns and be free to withdraw their money at will.
There is a belief among many investors that excess returns can be earned in the market by owning stocks for only 6 months out of the year and sitting the rest of the time in interest-bearing Treasury securities.
For the past few decades the conventional wisdom in finance has been that investors don't receive any extra return for putting up with higher levels of raw volatility but that they do enjoy excess returns for owning high-beta stocks.
Millions of whole-life policies are guaranteeing returns in excess of what companies can earn on government bonds.
In my methodology, the objective is to generate returns in excess of those commensurate with the risk taken.
His hedge fund has posted net returns in excess of 20% for each of the last three years.
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Believe it or not some of these unknown money managers have verifiable returns in excess of 30% per year.
It handles in excess of 200 million returns a year and sorts 1.2 billion pieces of information from 1, 200 financial institutions.
If these estimates were to prove true, then a current position in Target offers the potential to generate returns in excess of 13% per annum over the next five years.
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With this small bias comes increased risk, but PXI has managed to generate excess risk-adjusted returns of more than 9.5 percent over the past year when compared with a cap-weighted benchmark of U.S. energy firms.
To be worth it, their choice has to provide returns in excess of the cost of borrowing, if they are leveraged, and two thick layers of fees (their own, and those of the funds they choose).
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In 2010, when the Fed chief not-too-subtly hinted at QE2, investors that jumped in following the speech reaped returns in excess of 20% through the end of the year, the Russell 3000 index shows, while in 2011, when Operation Twist was in the back-burner, they made 9.3%.
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They included valuations on its own tax filings of received donations far in excess of those listed by donating charities on their own tax returns documents, confusion over the identity of some individual donors responsible for tens of millions of dollars of goods, and insufficient or inadequate paperwork.
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The danger is to think that rapid increases in the monetary base will keep nominal interest rates permanently lower and that the excess reserves will not eventually be lent out in search of higher returns.
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The excess total return paid to bond investors must be paid back in future years in the form of lower expected returns.
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When we decompose factors explaining the returns we find that the dividend yield factor actually contributed negative 1.02% annualized to the excess return.
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