What Do You Call Corporate Officers

Who Leverage Factors

THE FUTURE

WHAT ARE FACTORS

Factors are investment characteristics that help explain the risk and/orreturn behavior of a stock or any asset. 

Factors represent some of the most intuitive, widely used and historically relevant investment concepts including factors, such as Value, Momentum, Quality and Volatility

Originally, factors were used to aggregate risk and attribute performance across dimensions through the Barra Risk Model, but today they are increasingly utilized in security selection across fundamental equity and fixed income portfolios

See What Your Shareholders See (Or Give Them New Information)

How much of the price return is based on factors (things) outside my control?

SHAK's Price Return for the YTD is -35.75%

But, exposure to multiple factors explains a stock that should be down -49.39%

That means Alpha of 13.64% was created. Congrats! 

Now You Can Communicate More Effectively with

Your Management Team and Shareholders

  • Our Stock is down ~35%, but the Global Market only accounts for -21% of the losses and we should have been down almost 50%.

  • Tell your shareholders or management teams that your firm generated ~14% in Alpha (your company specific return)

  • Our exposure to the consumer sector alone should have resulted in a -21.46% return (how does that compare to our peers)

  • And, the fact we are a Small Cap Name, has hurt us as a company by -6.20%

  • Size (meaning larger stocks) has outperformed over this period, contributing 3.53% to the performance of the world markets. This means that a large portion of your company's negative performance (-9.7%) is attributable to being a small company.

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