O’Shaughnessy Asset Management Research and Content



All Content:


Commentary

OSAM Update: Blizzard, Winter, or Ice Age

By: Patrick O’Shaughnessy

March 2020

The past two weeks have been a brutal market blizzard during what is now almost certainly an economic and investing winter. Blizzards are defined by extreme volatility and uncertainty—and we’ve had historic amounts of both since February 20th.
  • Commentary
  • Patrick O’Shaughnessy
  • Factors • Markets
  • Value • Quality

Commentary

An Update From OSAM

By: Patrick O’Shaughnessy

March 2020

In recent weeks, markets have sold off in reaction to increasing coronavirus cases and falling oil prices. During such challenging times, CEO Patrick O’Shaughnessy shares some insights on recent factor performance and what the long-term evidence suggests for markets going forward.
  • Commentary
  • Patrick O’Shaughnessy
  • Factors
  • Value • Momentum • Shareholder Yield • Quality

Article

The Factor Archives: Value

By: Jamie Catherwood

February 2020

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.
  • Article
  • Jamie Catherwood
  • Factors • Financial History
  • Value

Commentary

O'Shaughnessy Quarterly Letter Q4 2019

By: Patrick O’Shaughnessy

January 2020

In 2019, we completed more research than in any prior year, built and launched Canvas, and shared 13 papers and over 50 podcasts. This letter is intened to share where markets stand at year end, and discuss what we built and learned at OSAM during 2019.
  • Commentary
  • Patrick O’Shaughnessy

Article

The Factor Archives: Momentum

By: Jamie Catherwood

December 2019

References to the 'momentum factor' appear as early as 1913, but the drivers of this factor stretch back even further. Investors focusing on buying quality companies at cheap valuations with strong earnings have benefited from the momentum effect for centuries.
  • Article
  • Jamie Catherwood
  • Factors • Financial History
  • Momentum

Article

The Factor Archives: Shareholder Yield

By: Jamie Catherwood

November 2019

Our analysis of corporate allocation over several decades finds that the most rewarding way to allocate capital is by returning it to shareholders. In fact, investors have recognized this for more than four centuries, and demanded buybacks and dividends as a result.
  • Article
  • Jamie Catherwood
  • Factors • Financial History
  • Shareholder Yield

Article

The Factor Archives: A History of Factor Investing

By: Jamie Catherwood

November 2019

While they may not have been known by the same names, many modern investment factors have historical roots stretching back centuries. This series, The Factor Archives, provides historical context on the six factor themes underlying OSAM’s investment process.
  • Article
  • Jamie Catherwood
  • Factors • Financial History
  • Value

Whitepaper

ESG the Right Way: Customization and Not Scale

By: Travis Fairchild

October 2019

In order to scale, the largest ESG products are designed to be one size fits all. This approach waters down and often tilts away from the values investors (institutional or individual) want. Poorly defined ESG screens and tilts can lead to starting universes and portfolio holdings that are not aligned with investors’ goals. We believe the best solutions are reached by tailoring portfolios to the unique goals of each investor. This paper discusses best practices in: tailoring ESG screens and tilts, combining ESG with Alpha factors to improve return expectations, and using differences in ESG data providers to solve a wider range of ESG goals.
  • Whitepaper
  • Travis Fairchild
  • ESG
  • Value • Momentum • Quality

Commentary

O’Shaughnessy Quarterly Investor Letter Q3 2019

By: Patrick O’Shaughnessy

October 2019

In this quarter’s letter, Patrick begins by highlighting the most interesting trend we see inside equity markets today, and finishes by sharing the five key lessons that we’ve learned so far after demoing Canvas for more than 100 advisors and other capital allocators.
  • Commentary
  • Patrick O’Shaughnessy

Article

Shareholder Yield: A Differentiated Approach to an ‘Efficient’ Market – US Large Cap Value

By: OSAM Research Team

September 2019

At OSAM we focus on Shareholder Yield to build differentiated, alpha-focused strategies in the “efficient” US Large Cap universe. Shareholder Yield is the sum of a stock’s dividend yield (paid over previous twelve months minus special dividends) and the percentage of net share buybacks over the previous twelve months. It is a powerful tool for identifying good management teams. Our approach aims to capture the benefits of both dividends and buybacks to drive positive returns for investors.
  • Article
  • OSAM Research Team
  • Factors
  • Shareholder Yield

Whitepaper

ML & Investing Part 2: Clustering

By: Kevin Zatloukal

September 2019

In this article, we will look at another way to build models that can describe non-linear relationships. While very different from the ensembles of decision trees that we saw last time, these new models also generalize linear regression and should be easy to incorporate into your modeling process.
  • Whitepaper
  • Kevin Zatloukal
  • Machine Learning
  • Value

Article

Q & A with Phil Huber

By: Patrick O’Shaughnessy

September 2019

OSAM CEO Patrick O’Shaughnessy recently sat down for an in-depth discussion on Canvas with Phil Huber, Chief Investment Officer at Huber Financial. Huber was an early Canvas partner and understands the power of customized portfolio management. In a recent article he included the following Q & A with Patrick. This Q & A serves as a valuable resource for how we think of the Canvas Platform.
  • Article
  • Patrick O’Shaughnessy
  • Canvas

Article

Introducing Canvas

By: Patrick O’Shaughnessy

September 2019

Today, I am excited to announce the release of Canvas, the first investing software that allows advisers and allocators to design, implement, and maintain deeply customized investment strategies. Building on OSAM’s 2+ decades of expertise in factor and systematic strategy design, Canvas hands allocators the keys to our best systems so they can design tailored strategies for their clients. Give your clients something they cannot find elsewhere—a strategy built uniquely for them.
  • Article
  • Patrick O’Shaughnessy
  • Canvas • Keystone Resources

Whitepaper

Mispriced Innovation – Patents as a Leading Indicator for Earnings Growth

By: Daniel Nitiutomo, Phlip Creutzmann, Lucas Von Reuss

July 2019

In this piece we analyze an innovation metric, Granted Patents, from a factor investing approach and show that this metric is indicative of both fundamental earnings growth and future stock performance. In combination with capitalized Research and Development expense, a more readily available innovation metric found today, we can further identify high-innovation companies that provide a differentiated source of excess returns and growth. Innovation metrics can aid quantitative Value investors in detecting mispricings caused by overly pessimistic expectations as cheap, high innovation companies show greater earnings resilience while benefiting from future, upward re-pricing.
  • Whitepaper
  • Daniel Nitiutomo • Phlip Creutzmann • Lucas Von Reuss
  • Factors
  • Value • Earnings Growth • Earnings Quality

Whitepaper

Value Is Dead, Long Live Value

By: Chris Meredith

July 2019

Value has underperformed since the beginning of 2007, leading some to think Value investing is dead. This paper takes a long look through market history and found another extended period from 1926 to 1941 where Growth outperformed Value, and offers a theory for the connection between the two periods and why the underperformance may be episodic.
  • Whitepaper
  • Chris Meredith
  • Factors
  • Value • Momentum

Whitepaper

The Earnings Mirage: Why Corporate Profits are Overstated and What It Means for Investors

By: Jesse Livermore*

July 2019

In this piece, Jesse Livermore introduces a new methodology for measuring the profitability and valuation of corporations. In applying the methodology, he encounters a massive discrepancy in corporate capital allocation. To explain the discrepancy, he attempts to show that reported company earnings are systematically overstated relative to reality. After identifying the likely causes of the overstatement, he explores their implications for individual stock selection and overall stock market valuation.
  • Whitepaper
  • Jesse Livermore*
  • Markets
  • Value • Shareholder Yield • Earnings Growth • Earnings Quality

Podcast

Patrick O'Shaughnessy - The Capital Allocators Podcast with Ted Seides

By: Patrick O’Shaughnessy

June 2019

A rare instance of OSAM CEO Patrick O’Shaughnessy appearing as a podcast guest. In this inaugural episode of “First Meeting with Ted Seides”, the conversation focuses on Patrick’s career in the world of investing, and O’Shaughnessy’s differentiated approach to factor investing, portfolio construction, and more.
  • Podcast
  • Patrick O’Shaughnessy

Article

An Ancient Relationship: FinTech and Financial Advice

By: Jamie Catherwood

May 2019

Few modern professions have lasted as long as the financial adviser, which archaeological evidence in Mesopotamia dates to at least the third millennium BCE. How has this profession lasted so long? The industry’s longevity is largely attributable to financial technology (FinTech), which has historically empowered advisers to better serve their clients.
  • Article
  • Jamie Catherwood
  • Canvas

Commentary

O’Shaughnessy Quarterly Investor Letter Q1 2019

By: Patrick O’Shaughnessy

March 2019

In this quarter’s letter, Patrick discusses two examples of how we are trying to build accumulating advantages at OSAM. First, by adding to our “research graveyard,” and second by building a web of interconnected software-based tools.
  • Commentary
  • Patrick O’Shaughnessy

Commentary

O’Shaughnessy Quarterly Investor Letter Q4 2018

By: Patrick O’Shaughnessy

January 2019

In this quarter’s letter, we address the most common questions that we field at OSAM by discussing: I. 2018 performance II. Whether the market looks attractive as of January 2019 III. Factor performance during 2018 (which started fine and ended very badly) IV. Our vision for the long-term future of OSAM.
  • Commentary
  • Patrick O’Shaughnessy

Whitepaper

ML & Investing Part 1: From Linear Regression to Ensembles of Decision Stumps

By: Kevin Zatloukal

December 2018

The idea of applying machine learning to finance and investing has become a popular topic of discussion recently, and for good reason. As its use becomes widespread, machine learning (ML) has the potential to change almost every part of society, both by automating routine activities and by improving performance in difficult activities. In all likelihood, investing will be no exception.
  • Whitepaper
  • Kevin Zatloukal
  • Machine Learning
  • Value

Whitepaper

Alpha within Factors

By: Chris Meredith, Jesse Livermore*, Patrick O’Shaughnessy

November 2018

In Factors from Scratch, we showed that value investing works through a re-rating process. The process begins when the market develops an expectation that the earnings of certain companies will decline or grow at depressed rates into the future. The market then prices those companies at a discount relative to their current earnings, turning them into "value stocks." Over the short-term, the market usually ends up being right in its expectations: value stocks usually do go on to experience declines or slowdowns in their earnings, particularly in comparison with the rest of the market. But over the long-term, they usually recover and return to normal growth. When the market prices value stocks, it tends to underestimate the likelihood and extent of their eventual recoveries.
  • Whitepaper
  • Chris Meredith • Jesse Livermore* • Patrick O’Shaughnessy
  • Factors • Keystone Resources
  • Value • Momentum • Shareholder Yield • Quality • Earnings Growth • Financial Strength • Earnings Quality

Commentary

O’Shaughnessy Quarterly Investor Letter Q3 2018

By: Patrick O’Shaughnessy

September 2018

In this quarter’s letter, we describe the more interesting, next stage of factor investing: alpha within factors. This simple idea describes what we’ve pursued at OSAM over the years, and what we continue to pursue through our research agenda today.
  • Commentary
  • Patrick O’Shaughnessy

Article

Announcing a New OSAM Research Partner

By: Patrick O’Shaughnessy

July 2018

We are excited to announce our second OSAM Research Partner and our search for more partners with some very specific skills.
  • Article
  • Patrick O’Shaughnessy

Commentary

O’Shaughnessy Quarterly Investor Letter Q2 2018

By: Patrick O’Shaughnessy

June 2018

In this quarter's letter, we're going to share our thoughts on three key topics: the Value factor’s extended run of poor performance, the ways we believe asset managers can borrow concepts from the technology sector, and our current research agenda.
  • Commentary
  • Patrick O’Shaughnessy

Whitepaper

Factors from Scratch

By: Chris Meredith, Jesse Livermore*, Patrick O’Shaughnessy

May 2018

The excess returns associated with Value and Momentum result from convergent and divergent processes, respectively. Value stocks are systematically underpriced and gradually converge on their fair value over time. Momentum stocks start out fairly valued or slightly overvalued, and go on to become more overvalued in the short-term, before reverting back. Both styles represent a market mistake that can be captured as alpha. In this piece, we're going to make all of these points more clear through a unified framework that we've developed to explain how factors work.
  • Whitepaper
  • Chris Meredith • Jesse Livermore* • Patrick O’Shaughnessy
  • Factors • Keystone Resources
  • Value • Momentum • Earnings Growth

Article

Announcing OSAM Research Partners

By: Patrick O’Shaughnessy

May 2018

Today we are announcing a new initiative: the OSAM Research Partners Program. Through the program, we will begin building formal relationships with the brightest and most curious people we can find to produce new research for the benefit of our investors and the broader community.
  • Article
  • Patrick O’Shaughnessy

Whitepaper

Dimensions of Return

By: Ehren Stanhope

April 2018

Few professional managers understand the power of portfolio construction, fewer still can quantify the impact on performance. While students of markets are inundated with knowledge on investment selection, an understanding of portfolio construction is woefully inadequate. To understand how impactful, we need new frameworks that differentiate between skill in construction versus selection.
  • Whitepaper
  • Ehren Stanhope
  • Portfolio Construction
  • Value

Whitepaper

Negative Equity, Veiled Value, and the Erosion of Price-to-Book

By: Travis Fairchild

April 2018

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).
  • Whitepaper
  • Travis Fairchild
  • Factors
  • Value • Shareholder Yield

Whitepaper

Purgatory for Pessimists: An Unemotional, Factor-Based Approach to International Equities

By: Ehren Stanhope

December 2017

Anyone overweight to non-U.S. allocations has suffered over the previous ten years. The current equity bull market has not been kind to non-U.S. allocations. The dramatic outperformance of U.S. stocks on the global equity stage has confounded allocators waiting for a turn, but history suggests these cycles are normal and revert over time.
  • Whitepaper
  • Ehren Stanhope
  • Markets
  • Value • Momentum • Shareholder Yield • Quality • Earnings Growth • Financial Strength • Earnings Quality

Whitepaper

Microcap as an Alternative to Private Equity

By: Chris Meredith, Patrick O’Shaughnessy

December 2017

We highlight an alternative to private equity: microcap equities. While private equity offers potential advantages, it also requires taking distinct risks. In this paper, learn how microcap equities can help mitigate these risks and also provide strong performance by using proven themes for stock selection.
  • Whitepaper
  • Chris Meredith • Patrick O’Shaughnessy
  • Strategies
  • Value • Momentum • Quality

Whitepaper

A Returns-Based Approach: Incorporating U.S. Microcap in Equity Allocations

By: Ehren Stanhope

October 2017

“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.
  • Whitepaper
  • Ehren Stanhope
  • Strategies
  • Value • Momentum • Shareholder Yield • Quality • Earnings Growth • Financial Strength • Earnings Quality

Whitepaper

Microcaps — Factor Spreads, Structural Biases, and the Institutional Imperative

By: Ehren Stanhope

August 2017

Many investors readily agree that alpha is scarce. It is hard to find, highly sought after, 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.
  • Whitepaper
  • Ehren Stanhope
  • Strategies
  • Value • Momentum • Quality • Earnings Growth • Financial Strength • Earnings Quality

Whitepaper

They Can’t All Be That Smart

By: Chris Meredith

July 2017

As the number of factor products increase, it’s important to understand how different portfolio construction methods can lead to very different investment results, even when using the same factors.
  • Whitepaper
  • Chris Meredith
  • Indexing
  • Value • Shareholder Yield

Whitepaper

A Factor Alpha Approach to REITs

By: Chris Meredith, Travis Fairchild

June 2017

While factor investing has caught on in public equity markets, it has been largely overlooked in real estate investing. Yet our research shows the public real estate market is a uniquely inefficient, and fertile ground for active, factor-based investing. Factor investing in REITs has a proven track record, in this paper, read how any allocation can benefit from this unique approach to REITs, whether used to increase liquidity, increase access, or broaden the list of real estate opportunities.
  • Whitepaper
  • Chris Meredith • Travis Fairchild
  • Strategies
  • Value • Momentum • Shareholder Yield • Quality • Earnings Growth • Financial Strength • Earnings Quality

Whitepaper

Factors Are Not Commodities

By: Chris Meredith

March 2017

OSAM Research Director Chris Meredith, CFA challenges and dispels the notion that investment factors are commodities. Factors that some view as generic are nuanced both in their definitions and implementation.
  • Whitepaper
  • Chris Meredith
  • Factors
  • Value • Momentum • Quality

Whitepaper

Price-to-Book’s Growing Blind Spot

By: Chris Meredith

November 2016

Has an increase in shareholder transactions (primarily share repurchases) contributed to how price-to-book has gradually become ineffectual in recent years?
  • Whitepaper
  • Chris Meredith
  • Factors
  • Value

Whitepaper

Buybacks Bears and Bulls

By: Chris Meredith

October 2016

This paper offers an examination of stocks with strong buybacks, trying to determine if they are thriving because of earnings or stock manipulation.
  • Whitepaper
  • Chris Meredith
  • Markets
  • Value • Shareholder Yield

Whitepaper

Peculiar Stock Leadership in 2016

By: Travis Fairchild

July 2016

The first part of 2016 has been one of the most difficult time periods for active management on record. To shed light on this challenging period we explore the profile of the stocks which have led the Russell 1000® benchmarks. Characteristics that historically do poorly are leading the market over this period. Further, the gap of value over growth indices so far this year is more a surge in stocks with terrible sales and earnings growth, and less a triumph of traditional cheap over expensive.
  • Whitepaper
  • Travis Fairchild
  • Markets
  • Value

Whitepaper

The Economic Cycle: A Factor Investor’s Perspective

By: Ehren Stanhope

May 2016

Does the economic cycle have any bearing on investment success? Macro investment houses have constructed intricate frameworks to understand the “economic machine,” but economic data are notoriously prone to revisions, lags, and adjustments in measurement through time—none of which are suitable for timely and reliable investment signals. As factor investors, we believe that certain fundamental characteristics—not economic variables—drive stock returns. We’ve distilled the hundreds of investment factors into cohesive multi-factor themes that can serve as foundational building blocks for equity strategies. Among the litmus tests for those themes is persistence. This paper identifies investment themes that deliver persistent outperformance in multiple different economic environments.
  • Whitepaper
  • Ehren Stanhope
  • Factors
  • Value • Momentum • Shareholder Yield • Quality • Earnings Growth • Financial Strength • Earnings Quality

Whitepaper

Alpha or Assets? Factor Alpha vs. Smart Beta

By: Patrick O’Shaughnessy

April 2016

Read how to build investment strategies for alpha, not scale—and why we believe the asset management industry has gone in the opposite direction.
  • Whitepaper
  • Patrick O’Shaughnessy
  • Factors • Keystone Resources
  • Value • Shareholder Yield

Whitepaper

The Inefficient Canadian Market

By: OSAM Research Team

April 2016

Read why the Canadian market deserves consideration as a dedicated piece of an investor’s overall asset allocation. Canadian equities have a long history, dating back to 1861, and today it ranks as the world’s fourth largest stock market by market capitalization. Over the period from 1900 to 2014, adjusted for inflation, Canadian equities have returned 5.8 percent annualized, which compares favorably to the U.K’s return of 5.3 percent and slightly lags the U.S. return of 6.5 percent (see also “The Dangers of Indexing in Canada” linked below).
  • Whitepaper
  • OSAM Research Team
  • Canada
  • Value • Momentum

Whitepaper

A True Microcap Strategy

By: Jim O’Shaughnessy

March 2016

Is there an undiscovered market where valuations are not systematically picked apart by Wall Street analysts, where huge changes in valuation often go unnoticed, and a stock’s price is very much at odds with its true value? Read this paper to learn more about the opportunity for consistent, long-term excess returns that awaits investors in the overlooked, undervalued and unappreciated, and uniquely-positioned microcap space.
  • Whitepaper
  • Jim O’Shaughnessy
  • Strategies
  • Value • Momentum • Shareholder Yield • Quality • Earnings Growth • Financial Strength • Earnings Quality

Whitepaper

The Dangers of Indexing in Canada

By: OSAM Research Team

February 2016

The Canadian market gets little attention and is rarely a dedicated piece of an overall asset allocation outside of Canada. However, for the past two decades, it has been one of the most consistent-performing developed markets in the world. Investing in Canada via market cap-weighted indexes can introduce unnecessary risks. This paper shows how active management can give investors an edge in the Canada market.
  • Whitepaper
  • OSAM Research Team
  • Canada • Indexing
  • Value • Momentum

Whitepaper

Stocks You Shouldn’t Own

By: Chris Meredith, Ehren Stanhope, Patrick O’Shaughnessy, Travis Fairchild

January 2016

Active management has two potential advantages versus an index. The first advantage is the one that most people think of: active stock selection. But this paper focuses instead on the second potential advantage: active stock elimination, or identifying stocks not to own in the portfolio. While owning strong performers is the most obvious source of excess returns versus a benchmark, the stocks that are in an index but not in an active portfolio often explain as much of the active portfolio’s relative returns.
  • Whitepaper
  • Chris Meredith • Ehren Stanhope • Patrick O’Shaughnessy • Travis Fairchild
  • Markets
  • Quality • Earnings Growth • Financial Strength • Earnings Quality

Whitepaper

High Conviction Buybacks

By: Patrick O’Shaughnessy

August 2015

Much has been written on the role that buybacks can play in the overall market and whether or not they are implemented with the interests of investors under consideration. This paper focuses on (1) the pre-disposition of companies with high conviction in their own buyback programs to outperform the majority of companies engaged in low conviction buybacks and (2) how investors can use this to their advantage.
  • Whitepaper
  • Patrick O’Shaughnessy
  • Markets
  • Value • Shareholder Yield

Whitepaper

Inefficiency Breeds Opportunity in Small Cap Equities

By: Chris Meredith, Ehren Stanhope

July 2015

With widespread inefficiencies and a greater dispersion of returns, the small cap space calls for an active management approach. This commentary, redefining inefficiency as opportunity, identifies the significant potentials for excess return in small cap equities and serves as a guide to navigate this often-overlooked area of the market. Read this whitepaper to learn how our disciplined, multi-factor strategy offers an alternative to traditional qualitative stock-picking methods.
  • Whitepaper
  • Chris Meredith • Ehren Stanhope
  • Strategies
  • Value • Momentum • Quality • Earnings Growth • Financial Strength • Earnings Quality

Whitepaper

A Logical Antidote to Indexing

By: Ehren Stanhope

March 2015

  • Whitepaper
  • Ehren Stanhope
  • Indexing • Strategies
  • Value • Momentum • Shareholder Yield • Quality • Earnings Growth • Financial Strength • Earnings Quality

Whitepaper

The Power of Share Repurchases

By: Patrick O’Shaughnessy

June 2014

One effective strategy in the U.S. over the past several decades has been to buy stocks that are in the midst of repurchasing significant quantities of their shares—but just blindly following buybacks isn’t always a good strategy. This paper outlines a very brief history of buybacks, explores the reasons (good and bad) that companies buy back stock, and explains the huge advantage available to investors who incorporate buybacks into a total “shareholder yield” calculation to be used in their investment strategy, while at the same time avoiding companies that are buying back shares for the wrong reasons.
  • Whitepaper
  • Patrick O’Shaughnessy
  • Factors • Keystone Resources
  • Value • Shareholder Yield • Quality • Earnings Quality

Whitepaper

Value & Momentum—Building a Unique Canadian Equity Portfolio

By: Travis Fairchild

March 2014

Canadian equity indexes based on market-cap-weighted constructions are structurally flawed and result in unforeseen concentration risks. Systematically buying stocks based on their valuations and market momentum has proven to be an effective way of beating market-cap-weighted indexes in markets around the world. These two themes work especially well in the Canadian equity market. This paper outlines why these two themes work so well in Canada, and how to use them to build an investment strategy.
  • Whitepaper
  • Travis Fairchild
  • Canada
  • Value • Momentum • Shareholder Yield

Whitepaper

Combining the Best of Passive and Active Investing

By: Patrick O’Shaughnessy

March 2013

Should investors pay higher fees to active managers in an attempt to beat the market? Or should they instead buy cheap passive index funds or exchange traded funds (ETFs)? The choice between the passive or active approach to investing can have a huge impact on long-term results. In this paper, we evaluate the arguments for each style, and argue for an approach that combines the strengths of both the passive and active approaches.
  • Whitepaper
  • Patrick O’Shaughnessy
  • Indexing
  • Value

Whitepaper

OSAM Research: Dividend Yield vs. Dividend Growth

By: OSAM Research Team

September 2012

Investor appetite for high-yielding companies continues to grow. However, there are those who believe high dividend payments are a poor indicator of a company’s future growth prospects and prefer to select stocks using “dividend growth” instead. Our research suggests that investors should focus on dividend yield rather than dividend growth rates.
  • Whitepaper
  • OSAM Research Team
  • Factors
  • Value

Whitepaper

Why U.S. Investors Should Look Beyond Dividend Yield

By: Patrick O’Shaughnessy

March 2012

Though U.S. stocks with high dividend yields have become very popular with individual and professional investors, OSAM makes the case for shareholder yield, a factor the Research Team has long advocated, which has provided strong returns for U.S. stocks for more than 80 years. Shareholder yield is the sum of a company’s dividend yield plus its buyback yield (the percentage of shares outstanding that have been repurchased or issued over the last year).
  • Whitepaper
  • Patrick O’Shaughnessy
  • Factors
  • Value • Shareholder Yield • Quality

Whitepaper

Inflation and the US Bond and Stock Markets

By: Jim O’Shaughnessy

April 2011

Jim O’Shaughnessy looks at historical returns for stocks and bonds in various inflationary environments, and what investors might expect going forward.
  • Whitepaper
  • Jim O’Shaughnessy
  • Markets
  • Value • Momentum • Shareholder Yield

Whitepaper

The Economy and the Stock Market

By: Patrick O’Shaughnessy

September 2010

In the face of so much grim economic news and uncertainty about the future, the OSAM Research Team reviews the historical implications of low economic growth, high unemployment, low consumer confidence and top marginal tax rates on future stock returns.
  • Whitepaper
  • Patrick O’Shaughnessy
  • Markets

Whitepaper

Thoughts on the Correction

By: OSAM Research Team

May 2010

The return of fear has created an opportunity for the long-term equity investor to buy stocks at a major discount. This commentary by the OSAM Research Team may persuade clients to stay calm and, if possible, add to the equity market.
  • Whitepaper
  • OSAM Research Team
  • Markets

Whitepaper

A Generational Opportunity

By: Jim O’Shaughnessy

March 2009

Jim O’Shaughnessy studies how rare the current market downturn has been—and why it may present a once in a lifetime buying opportunity.
  • Whitepaper
  • Jim O’Shaughnessy
  • Markets