Why Indexing Fails

The recent paper “Why Indexing works” [1] gives a probabilistic explanation of the futility of the Active process and why Passive Indexing is hard to beat. For every 1000 people who read the Wall Street Journal, maybe 10 read the Bloomberg Markets (BM) magazine and for every 10 who read the last month’s issue of…

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RMI® Nasdaq up 50%

RMI® listed on Nasdaq crossed the 50% return back beating the Nasdaq 100 (NDX) by 20.99% and Nasdaq Composite (NQUSB) by 38.87% for the period starting January 2015. RMIVG20 is one of the top performing equity models globally for the period. RMI models are listed on Bloomberg (<ORMI> GO). RMI® Methodology is based on a universal…

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Orpheus shortlisted for AIconics Awards

Orpheus was shortlisted for the AIconics awards announced in London. The AIconics are the world’s only independently-judged awards celebrating the drive, innovation and hard work in the international AI Community. Now in their third edition, the 2017 awards feature an unprecedented eight categories and has been the most hotly-contested awards to date. Judged by a…

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Valeant

The Valeant story confirms that human selection systems are poor and risky, can lack ethics and can fool itself into the illusion of wealth. Any review of mistakes is hindsight bias because even the utmost smartness cannot beat the need for risk management. The whole reason why pension funds are embracing baskets and avoiding hedge…

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RMI® UK delivers 6.4% in Q1'17

March 31, 2017 All the 8 RMI models listed on Bloomberg (<ORMI> GO) starting January 2016 delivered an absolute positive return for the first quarter of 2017. 6 RMI models delivered a positive risk-weighted excess return above their respective benchmarks. The average excess returns for the first quarter was 1.04%. The RMI UK Value Growth 40 and  RMI…

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Are good months followed by good months?

Comment on ‘What is Value?’ – Mukul Pal, September 20, 2015. Roxana Crisan roxana.crisan@tralio.com It’s shocking how Nobel Prize winning economists have relied on naive assumptions. Harry Markowitz [1] assumed that good months (performance) would tend to be followed only by good months and bad months by bad months. Was Harry correct in making such…

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Human AI

Abstract Finance is a key milestone for AI. Imagine coming back from vacation and talking to your virtual assistant about your investment portfolio and wondering how she does it, quarter after quarter, year after year. Managing money is the real test for human AI. It has to talk, it has to think, it has to…

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Where are the monthly numbers?

Yes! you need to ask such questions to your smart beta company. If they say they are smart they need to illustrate that in the monthly performance numbers. Monthly numbers are not the expected norm for Smart Beta companies. How can it be? If ‘Value’ as a style can underperform for years followed by a…

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Mukul in top 10% at SSRN

Congratulations Mukul. You are in the top 10% of Authors on SSRN by downloads this month. SSRN Author Page

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RMI® India Growth 20 up 7.82% in January.

Press Release RMI® India Growth 20 up 7.82% in January. London – Jan 31, 2017 The RMI® India Growth 20 selects 20 out of the top India 50 stocks based on the RMI® Value Growth methodology. The RMI® India Growth 20 is listed on Bloomberg (<ORMIIN11> GO). The model delivered 7.82% in January. This return was…

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The Black Swan

Finance does not understand the physics of preferential attachment. According to Taleb, the intuitively appealing preferential attachment is incomplete. This is a tragedy for his ‘Black Swan’ because preferential attachment is the other name for ‘Rich Get Richer’. Taleb bases his philosophy of randomness on the non-normal power law behavior which is also another way…

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RMI® REITs beats RMZ by 6.48%.

Press Release RMI® REITs beats RMZ by 6.48%. London – Jan 31, 2017 The RMI® US REIT measures the performance of the top 150 US Real Estate equities based on the RMI® Value-Core-Growth methodology. The RMI® US REIT Index Value Core Growth 2016 listing on Bloomberg (<ORMIRE11> GO) delivered an absolute return of 13.16% in…

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RMI® UK starts 2017 by 5.15% Excess Returns in January.

Press Release RMI® UK starts 2017 by 5.15% Excess Returns in January. London – Jan 31, 2017 The RMI UK Value Growth 40 delivered the top excess return of 5.15% in January. The RMI Canada continued with its last year momentum at 4.32% excess return above TSX 60 in January. The 9 RMI models listed on Bloomberg…

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Web Singularity

Abstract Tim Berners Lee’s vision of the Semantic Web (Web 3.0) as defined in his 2001 paper with Hendler and Lassila though accurate is incomplete. The evolution of the web is not going to stop at its cognitive stage but will move towards becoming an ultra-smart agent and for that to happen the web needs…

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RMI® Models on Bloomberg deliver 7% Excess Returns in 2016.

Press Release RMI Models on Bloomberg deliver 7% Excess Returns in 2016. London – December 30, 2016 All the 8 RMI models listed on Bloomberg (<ORMI> GO) starting January 2016 delivered an absolute positive return for 2016. All the RMI models also delivered a positive risk-weighted excess return above their respective benchmarks. The average excess…

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