Fundamental Law of Active Management: Skill and Breadth

Two research decks land in the same week. The first belongs to a manager who called four big macro turns over three years and got every one of them right.…

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Rank Correlation: Measuring Screen Ranking Stability

You run a factor screen at the end of August, and the ten names at the top look familiar. You run it again four weeks later. The same companies are…

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Information Coefficient: How to Judge a Ranking Model

Someone hands you a backtest. The headline reads: an information coefficient of 0.06, a smooth equity curve, and a claim that the model ranks stocks better than the market does.…

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