Deep Value is a quantitative investing strategy which selects for investment the cheapest stocks in the universe based on a valuation multiple. Value investing in general, and Deep Value in particular, has been proven to beat the market handily in the long term by both practitioners’ experience and academic research. In their book, Quantitative Value, + […]
Archives for September 2017
Deep Value Portfolios – How They Worked (Back Testing)
Deep Value is a quantitative strategy that invests in the cheapest stocks of a stock universe. Constructing a Deep Value portfolio is simple – Simply buy a diversified list of cheap stocks based on a single valuation multiple or a composite of multiples. We have tested three types of Deep Value portfolios, each using a […]
Quantitative Value Strategies – A Primer
It seems that almost every investor today is a value investor. Since Value Investing is such a broad term, the ways to employ a value investing strategy are endless. The definition of Value Investing is investing in stocks in which their market price is lower than their intrinsic economic value, and holding them until the […]
Establishing a Quantitative Stock Portfolio – An Overview
Establishing a stock portfolio using a stock screen consists of the following steps: Selecting an investment strategy which fits one’s temperament, worldview, and preferences for returns vs. volatility. Defining the universe of stocks to choose from. Deciding on the amount of diversification wanted, i.e., how many stocks to hold. Deciding on how the portfolio would […]