Alpha Architect White Papers

Alpha Architect White Papers


An Introduction to Investing and How to Use Our Site

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What We Do? We are a research-intensive asset management firm ...

The Alpha Architect Value Proposition

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Mission: Deliver Affordable Active Alpha. Firm overview (PDF) PDF of this document Executive ...

Behavioral Finance and Investing: Are you Trying Too Hard?

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Are you trying too hard? The case for systematic decision-making1 2 ...

The Sustainable Active Investing Framework: Simple, But Not Easy

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The debate over passive versus active investing is akin to other ...

The Quantitative Value Investing Philosophy

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The Quantitative Value Investing Philosophy Buy the Cheapest, Highest Quality Value Stocks ...

Value Investing: Never Buy Expensive Stocks. Period.

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We did a recent internal simulation study on the performance ...

The Quantitative Momentum Investing Philosophy

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The Quantitative Momentum Investing Philosophy Buy Stocks with the Highest Quality Momentum Author: Jack ...

Momentum Investing: Ride Winners and Cut Losers. Period.

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Two weeks ago, we posted a simulation study on the performance of cheap ...

The Robust Asset Allocation (RAA) Solution

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Robustness: Strong and effective in all or most situations and conditions ...

Avoiding the Big Drawdown: Downside Protection Investment Strategies

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Chasing the Investing Unicorn: Give me "High Returns with Limited ...

The World’s Longest Trend-Following Backtest

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Were in the middle of an academic research project and ...

A Simulation Study on Simple Moving Average Rules

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The mention of technical analysis in the halls of academia can ...

Not so Simple: Valuations and Low Volatility Strategies

FAJ Low Volatility Cycles The Influence of Valuation and Momentum
Low volatility funds are everywhere. The reasons for their proliferation ...

The Fascinating Relationship Between Low Volatility and Value

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A week ago, we posted an article that presented simulation performances of ...

Low-Volatility Investing: Avoid High Beta Stocks. Period.

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We've posted simulation and research-based studies on value and momentum ...

Is the Low Volatility Anomaly driven by Lottery Demand?

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A few years ago I wrote a summary on a ...

Tactical Asset Allocation: Beware of Geeks Bearing Formulas

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How Should I Tactically Allocate my Assets? A lot of ...

How to Build Expected Return Forecasting Models

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Investors are enamored with various investment houses and personalities who ...

Can Market Valuations Be Effective Market-Timing Signals?

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We know that valuation metrics such as the CAPE, or ...

Tactical Asset Allocation During Cheap Markets

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In our last post, we looked at tactical allocation using ...

Creating an Alternative Investment Strategy with Value and Momentum

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Anyone who follows our website should be familiar with the extensive ...

How to Combine Value and Momentum Investing Strategies

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How to Combine Value and Momentum Investing Strategies Part 1/2 ...

Why We Built An Active Robo-Advisor and Why You Should Too.

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Assuming you haven't been living under a rock, you've almost ...

1042 Qualified Replacement Property: An Overview of ESOP Rollover Strategies

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Executive Summary PDF of this document Employee Stock Ownership Plans ...

How to Create a Tax-Efficient Hedge Fund

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Bad News: The market currently offers hedge fund equity exposures that ...

Does the size effect exist? Probably.

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Executive Summary: Case for NO Size Effect The traditional small-minus-big value-adjusted ...

Commodity Futures Investing: Complex and Unique

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Commodity futures investing is arguably the most misunderstood asset class in ...

Rise of the Machines: Predicting Winners and Losers on the Robo-Advisor Battlefield

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The recent BlackRock purchase of FutureAdvisor pushed robo advisors to the front page ...

How to Pick Smart Beta ETFs

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It seems that a new exchange-traded fund is born every ...

Understanding How ETFs Trade in the Secondary Market

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Our mission is to empower investors through education. So train ...

How to Use Active Funds in a Diversified Portfolio

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Active management has been out of favor for a while--high ...

Distribution Economics: Understanding Wall Street’s Conflict of Interest Problem

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"Competition is a sin." --Attributed to John D. Rockefeller Bottom ...

How many stocks should you own? The costs and benefits of Diversification

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"How many stocks should I own in my portfolio?" This ...

Even God Would Get Fired as an Active Investor

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Empirical asset pricing research can sometimes get monotonous because you ...

Mission Impossible: Beating the Market Forever

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Mission Impossible: Beating the Market Forever The remarkable fact is ...

From the Frontlines to Finance: How the Marines Shaped Our Investment Philosophy

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Executive Summary: Serving in the Marine Corps was an unforgettable ...

A Framework for Investment Manager Selection: Stick to the FACTS

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Stick to the FACTS A framework for evaluating investment managers Wesley ...

Factor Investing is More Art, and Less Science

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Albert Einstein is reported to have said the following: The ...

Performance figures contained herein are hypothetical, unaudited and prepared by Alpha Architect, LLC; hypothetical results are intended for illustrative purposes only. Past performance is not indicative of future results, which may vary. There is a risk of substantial loss associated with trading stocks, commodities, futures, options and other financial instruments. Please click Full Disclaimer for additional disclosures.