Robert Arnott's Deriders
futureofcapitalism.com

"Arnott Index Derided by Bogle as Witchcraft Beats Vanguard Fund," is the headline over a Bloomberg News profile of money manger Robert Arnott. From the article:

Eugene Fama, a professor of finance at the University of Chicago's Booth School of Business who helped develop the efficient market hypothesis, said Arnott's indexes represent a triumph of marketing rather than an innovation in investing. In a 2007 interview in the Journal of Indexes, Fama said they simply capture the "value effect" by using measures such as cash flow to select cheaper equities, not unlike what stock pickers do. In an e-mail in April, Fama said of Arnott's work, "My view hasn't changed."

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Robert Arnott's Deriders
futureofcapitalism.com

"Arnott Index Derided by Bogle as Witchcraft Beats Vanguard Fund," is the headline over a Bloomberg News profile of money manger Robert Arnott. From the article:

Eugene Fama, a professor of finance at the University of Chicago's Booth School of Business who helped develop the efficient market hypothesis, said Arnott's indexes represent a triumph of marketing rather than an innovation in investing. In a 2007 interview in the Journal of Indexes, Fama said they simply capture the "value effect" by using measures such as cash flow to select cheaper equities, not unlike what stock pickers do. In an e-mail in April, Fama said of Arnott's work, "My view hasn't changed."

Read More...