Researchers from AQR Capital Management, a Connecticut-based asset manager, claim they have uncovered the source of Warren Buffett’s alpha. They believe Buffett-like performance can be achieved by constructing a portfolio with exposure to certain “factors.” But their theory hinges on a crucial assumption, which, as I will show, is highly tenuous.
Yesterday, the market continued its winning ways for the fifth consecutive day. The S&P 500 closed within 1% of its all-time high, and the DJI was even closer to its all-time high.
Technology, like Nature itself, has no emotional stake in what is creatively destroyed.
The average large cap score pops to 59.86 this week, moving it above the four week moving average score of 58.23. The average large cap is trading -10.5% below its 52 week high, 2.78% above its 200 dma, has 4.09 days to cover held short, and is expected to post EPS growth of 13.96% next year.
The average score across our ADR universe is 44.35, above the four week moving average score of 44.01. The average ADR is trading -17.32% below its 52 week high, 1.07% above its 200 dma, has 3.46 days to cover held short, and is expected to post EPS growth of 25% next year.
US Supreme Court Justice Roberts refused to "stay" a lower court ruling that Teva's Copaxone patent was invalid. Delek may go it alone in developing the massive Leviathan offshore gas field. Merger talks between Newmont Mining and Barrick Gold for a merger of equals have broken down.
