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Research Library

Research Documents
Mean Markets
Terry Burnham 10/2005
An economist’s biological research sheds light on why smart people do stupid things in the market.
Variance, Forecast Risk and Fat Tails: Understanding the Downside Risk of Portfolios
Max Arai, PhD 11/2004
This note provides simple guidance to the interpretation of realized and forecast risk estimates.
Current Views on the Case for Small-Capitalization Non-U.S. Equities
Ronald D. Frashure, CFA, and Melanie Endo 10/2004
The period since the collapse of the internet bubble has been a rewarding one for non-U.S. small-capitalization stocks. The small-cap sector has generated strong returns, outperforming cap-weighted international indices by a large margin.
Long-Short Strategies
Gary Bergstrom, PhD 6/2004
Disappointing recent returns from many world equity markets coupled with high volatility and lackluster future return forecasts by some institutional investors has increased interest in long-short strategies.
Current Views on the Case for Global Small-Capitalization Equities
John Chisholm, CFA 11/2003
Given current valuations and the likelihood of a sustained rebound in performance, we believe this asset class now represents a compelling investment opportunity for Australian investors.
Acadian Earnings Quality Study
Charles H. Wang, PhD 3/2003
While commonly used measures based on reported earnings such as price-to-earnings ratio and earnings growth rate are useful, these measures are highly aggregated and may not truly reflect the actual composition of “earnings”.
Implementation of Corruption-Bias Adjusted Book-to-Price Ratio for the Emerging Markets Country Model
Hwee Seong Chiah & Charles H. Wang, PhD 3/2003
In Acadian’s emerging markets valuation model, we use country-level book-to-price ratio (BP) as one measure of corporate valuation. We test the proposition that shareholder value is ...
Using a Quantitative Process to Uncover Accounting Irregularities and Identify Companies that Misstate Their Financial Condition
Acadian Research Team 2/2003
Acadian has three broad categories of factors to evaluate companies: valuation-related, growth expectations-related and price-related. All three provide valuable information that can be useful in identifying accounting irregularities.
Global Style Investing – Can Returns to Value and Growth be Predicted?
Brian Wolahan, CFA 1/2003
A primary focus of active equity management is identifying characteristics of stocks that can be used to predict future excess returns...
The Case for Active Management
Acadian Research Team 10/2002
Acadian has recently analyzed why disciplined active equity management should perform significantly better going forward
A Brief Overview of International Accounting Practices
Lixia Li & John Chisholm, CFA 10/2002
In this brief overview, we present a comparison of accounting practices across countries in the world.
Benefits of Acadian's Quantitative Approach to Global Equity Investing
Acadian Research Team 6/2002
The objective of this note is to explain why we believe a quantitative approach makes sense, and what advantages and disadvantages such an approach has relative to more traditional approaches.
Does Style Matter in Global Investing?
John Chisholm, CFA 11/2001
In general, a “value” investment style is defined by a focus on low stock prices relative to valuation fundamentals, such as book value or earnings per share. A “growth” style is defined by an emphasis on expected earnings growth and higher price-to-fundamental levels.
Is International Equity Still an Effective Diversifier?
Ronald D. Frashure, CFA 6/2001
The last five years has been a very challenging time to be an advocate of global portfolio diversification—especially from the point of view of a U.S.-based investor.
Will There Be a Renaissance for Value Investing?
Ronald D. Frashure, CFA 9/2000
This rebirth of value investing could be stimulated to a surprising degree by the positive benefits of the “new economy” for what are seen as “old economy” companies.
Barriers To Meeting Investment Objectives--Ourselves? Behavioral Finance Insights Into Apparent Market Irrationalities
Ronald D. Frashure, CFA 8/2000
Conventional financial economists, including Shiller, have analyzed market overreactions and shown that market moves often go well beyond what can be explained by “rational” economic pricing models. In these cases, something else is clearly going on to drive the market to extremes.
The Geocultural, Economic, and Financial Reasons for World Equity Market Correlations
Charles H. Wang, PhD 11/1999
Equity market correlations differ from country to country due to geocultural, economic, and financial reasons. In this paper, a model of equity market correlations is developed and tested.