Fama and French do not believe the excess return from value investing is not without consequence.
Either way, you get an excess return built into the pricing of the investment.
When it comes to new healthcare services ventures, the law punishes excess return on invested capital.
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The investor's excess return is somebody's loss--and the losers would have to be hardworking peasants in the Third World.
Rising correlations diminish the benefits of diversification and the potential excess return that can be realized by picking individual stocks.
FORBES: Current Highly Correlated Stock Returns Are Temporary
Wolfe also leads the dozen airfreight and logistics analysts in StarMine's database in three-year performance, with an excess return averaging 11.5%.
Portfolio managers often use the eponymous Sharpe ratio to determine how much excess return they are producing per unit of risk.
In addition, an added benefit has been a excess return derived from regular rebalancing relative to a portfolio that is not rebalanced.
The excess return tells you that the monetary authorities who preside over soft currencies pay for all their sins, and then some.
When we decompose factors explaining the returns we find that the dividend yield factor actually contributed negative 1.02% annualized to the excess return.
In 2006 Wolfe generated a 9.6% excess return, that being how much his stock picking in one of his sectors, airfreight and logistics, beat the sector return.
The PowerShares DB Agriculture Fund ( DBA) is based on the DBIQ Diversified Agriculture Index Excess Return, which tries to duplicate the performance of the entire agriculture sector.
If you are happy with the earnings growth implied in that fair value calculation, then you can still make a return in the stock, just not excess return.
FORBES: You Don't Make A Killing Buying Stocks At Fair Value
This amplification then creates a race where investors rush in to snap up properties before the market stabilization they themselves are creating leads to increasing prices which destroys their excess return.
These folks may decide to include asset classes that have no real long-term return with the hope that low correlation with other investment will generate enough excess return from rebalancing to make up for the shortfall.
Parker is successful enough at making calls--his recommendations have a 28% excess return over his industry benchmark for the last three years ended last December--but he says that fluctuating oil prices make his industry a tough one to analyze.
To buy shares of stock in a business trading at fair value means that it is highly likely that all of your return will be generated by earnings growth, and that there will be no excess return from the shares trending upward from an undervalued position.
FORBES: You Don't Make A Killing Buying Stocks At Fair Value
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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Most companies use share buybacks or pay special dividends on their common stock to return excess cash to shareholders.
The more efficient and effective approach is to allow profitable companies to return excess capital to their shareholders without subjecting those dividends to discriminatory tax treatment.
Value investors like Einhorn are known for wanting companies to return any excess capital to shareholders.
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You must return any excess reimbursement or allowance within a reasonable time period.
The Additional Medicare Tax withheld by the employer is reconciled on the individual tax return and any shortfall or excess is treated as an additional tax or credit on that return.
Zorman said doctors will be monitoring Giffords closely to make sure the excess fluid doesn't return.
Together, the improving currency and rising stocks could produce a return for portfolio investors in excess of 60%.
Strong demand for safe assets could produce an attractive return for firms that have excess cash to lend out, particularly if low interest rates persist.
As a result, the taxpayers had not contributed value in excess of the value they received in return, and were thus barred from claiming a deduction.
But unlike gold, the inflation track record on TIPS is short, ambiguous and heavily distorted by illiquidity, oil prices (which are included in their return), and the same excess liquidity "conundrum" that has been confusing yields across the bond spectrum.
Adding the Lucasfilm IP to our existing Disney, Pixar and Marvel IP clearly enhances our ability to serve consumers, strengthening our competitive position -- and we are confident we can earn a return on invested capital well in excess of our cost of capital.
ENGADGET: Disney acquires Lucasfilm for $4.05 billion, plans more Star Wars movies
The militant snap of Peter Prescott's drums, the howl of Roger Miller's guitar and the harsh plucks of Clint Conley's bass all return in an anthemic battle cry against excess titled "1, 2, 3, Partyy!"
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