Questions tagged [investing]

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32
votes
6answers
23k views

What type of investor is willing to be short gamma?

As far as I understand, most investors are willing to buy options (puts and calls) in order to limit their exposure to the market in case it moves against them. This is due to the fact that they are ...
15
votes
3answers
3k views

What are some quantitative approaches to value investment?

As a developer and statistician, I consider value investing to be a statistically sound investment strategy. I've read a few books on the area but I am still not clear on valuation measures. So I ...
7
votes
2answers
3k views

Data exported from Capital IQ, FactSet, Bloomberg, Compustat

I'm looking for reliable data on US equity fundamentals, but not sure which vendor provides these features: Unlimited data export Coverage of disbanded entities (bankruptcies, M&A) Financial ...
7
votes
1answer
566 views

S&P 500 list of stocks since 1960

I am looking for the S&P 500 index list of stocks for each day since January 1, 1960. Does anyone know where I can find these lists?
4
votes
1answer
732 views

Long-term vs short-term strategies \ investing

Suppose most investors have very short investing horizons and use appropriate (for them) strategies, but investor X has a very long horizon. He would like to trade some advantages (early withdrawal ...
4
votes
1answer
164 views

Should factor signals decay?

If the factors have information content, I expected factor portfolios constructed using recent financial statements should outperform portfolios using stale data. To test this, I used the Professor ...
3
votes
2answers
1k views

Criteria to assess the possibility of corporate bankruptcies in U.S. equity exchange markets [closed]

Which criteria do you suggest to measure the susceptibility of bankruptcies (e.g., Chapter 11, 7) for a company in a U.S. equity exchange market (e.g., NYSE, ...
3
votes
3answers
437 views

What is the case for active management?

A recent personal finance question asks when to hire an investment professional? Given that many of us here are on the professional manager side of the business, how would you make the case? What ...
3
votes
2answers
2k views

Differences between editions of Security Analysis by Graham and Dodd?

Where can I find a comparison of the contents, a list of everything that changed or the differences among the different editions of the book Security Analysis by ...
3
votes
0answers
150 views

In investing, the crowd is wrong much more often than right

I am reading Ken Fisher's Beat the Crowd, and the second sentence in the book is this: In investing, the crowd is wrong much more often than right. I was wondering if there is a way to define the ...
2
votes
1answer
375 views

Why use leverage when it does not improve the risk/reward ratio? [closed]

Leverage will increase gains when things go right but will also increase losses when things go wrong. Mathematically speaking, it does not change the risk/reward ratio (or does it?). Since investing/...
2
votes
1answer
68 views

How to calculate performance of a private equity investment?

Say an investment fund puts \$1 million into private equity investment in 3 installments (\$500k, \$250k, \$250k). You're given a data table which shows the date, contributions (\$500k, \$250k, \$...
2
votes
1answer
150 views

Hidden/Dark Pool Hedge Funds

Is there a noun for investment funds which do not disclose the assets they are investing in to their customers? Some exchanges are called "Dark Pools" where the orderbook is hidden to traders, so I ...
2
votes
1answer
111 views

IPO Valuation: Share Pricing and Number of Shares

Does the number of shares matter for a company to go public? Suppose a company ABC went public and the initial valuation of the company shares to be sold stands at \$5000. Now, it can sell 1000 ...
2
votes
2answers
245 views

Security Market Line & Required Rate of Return for Projects

A standard definition of the Security Market Line is as follows: The security market line ("SML" or "characteristic line") graphs the systematic (or market) risk versus the return of the whole ...
2
votes
0answers
84 views

What type of fund is this?

Is there a name for a fund or investment where many people all split the cost of the investment. For example with peer to peer lending many investors can loan 50 dollars or more to a 40,000 dollar ...
2
votes
0answers
55 views

Looking for: List of 30 top-performing value investors in the US (AUM 100USD mn+; 10 years)

we are currently looking to build another database sourced by crawling the SEC (freely available at SimFin). Our goal is to build a monthly updating database showing the holdings of the top value-...
2
votes
2answers
247 views

Which proxies to user for investor sentiment and industry performance, and where to find the data?

I came up with the idea of dealing with investor's sentiment effect in stock market in my thesis. I would like to know which proxies you would suggest to use as sentiment index and from which source ...
1
vote
1answer
2k views

What is Advent Software's Geneva?

I've heard from Renaissance Technologies Corp. that there exists a software for investors which is called Advent Software's Geneva. Could anyone be able to explain to me what is this software exactly?
1
vote
3answers
83 views

How are bets and high-risk investments conceptually different, and how does this apply to binary options?

They look pretty similar to the layman's eyes: You have to pay something, and then a non-deterministic (or non-fully-known) event occurs. Such event has a (perhaps unknown) probability of occurring ...
1
vote
1answer
131 views

Compound interest calculator solving for time with deposits [closed]

I am attempting to solve a compound interest calculation for time given Principal = 100 Time(years) = t Rate(per year) = 8% Deposit(per month) = 5 Total = 300 I ...
1
vote
1answer
584 views

Differences between Snowball, KIKO and TRF derivatives?

Can you explain what are some similarities and differences between snowball, KIKO (knock in knock out) and TRF (target redemption forward) derivatives?
1
vote
1answer
423 views

Penny jumping in the direction of the price

Reading through examples of legal front running, I'm struggling to understand how "penny jumping" (http://www.wikinvest.com/wiki/Front-running) can be profitable. Suppose stock ABC is trading at a ...
1
vote
0answers
25 views

Question regarding loan tape data when thinking about providing credit facility to bank

I have few questions regarding loan tape data such as this one: Data Say that I as a fund want to provide a credit facility to this bank and am given this loan tape data. (1) What observations / ...
1
vote
0answers
41 views

estimate cost of equity (Re) / required rate of return using DCF [closed]

I'd like to estimate Amazon's after-tax cost of equity (Re) using both the DCF and CAPM approaches. Tons of info and resources on how to estimate Re using CAPM, but DCF, I see no relevant resources. ...
1
vote
0answers
28 views

Which stock price to take for historical ratios in stock screener (EPS etc.)?

We are currently testing a stock screener that we built and want to implement historical ratios in there too - this is working already for all ratios that don't require stock prices (so all ...
1
vote
1answer
263 views

What does NPV ASSENTED after stock name mean?

For a project, I have to quantitatively implement a strategy for value investing in EURO STOXX 50. I pulled the data from Datastream. When I was checking some data plots for dividend yields and total ...
0
votes
1answer
180 views

how to quantify non-fundamental risk if variance is 100% discounted?

If there's better vocabulary, forgive me. If you were required to ignore variance as risk, how would you quantify non-fundamental risk? Many thanks in advance!
0
votes
1answer
8k views

What does “Inst. Own” mean on Google Finance, and how can AOL be 103% “Inst. Own”'d?

https://www.google.com/finance?q=NYSE%3AAOL&ei=yZCpUODEMsKqqgHPzQE Previously, I assumed "Inst. Owned" meant the percentage of the company's stock that was owned by the company (viz. not floated),...
-1
votes
2answers
117 views

How to test a strategy with a small capital? [closed]

I have developed an algorithm / model that predicts the next day direction of CBOT wheat futures. It performs sufficiently well in backtesting that I'm interested to see how it would perform with real ...
-1
votes
1answer
37 views

What is wrong in my investment calculation [closed]

I am thinking to start investing monthly and i am trying to calculate my investment using excel with a compound interest of 5% monthly plus addition of certain amount. First month investment is 10000 ...
-2
votes
2answers
117 views

What is the most amount of money the consumer would be willing to pay to play take this gamble?

Suppose a consumer has log-utility over wealth, defined by $u(W) = \ln(W)$. Suppose this consumer has $100$, and is considering taking a gamble in which the consumer flips a coin, and gets $20$ she ...
-3
votes
1answer
162 views

How can foreign investment have a negative figure?

Just looking at http://www.tradingeconomics.com/japan/foreign-bond-investment Wondering how can foreign bond investment be negative? You can have 0 investment, you can have positive investment, but ...