​Stock Index Castoffs Have Delivered Enduring And Outsized Returns, Quant Researchers Find – Tyler Durden

Stock Index Castoffs Have Delivered Enduring And Outsized Returns, Quant Researchers Find When stocks are ejected from market-cap-weighted indexes, swooping in to load up on them — and hold on to them — can pay off nicely, according to a new paper from Newport Beach, California-based Research Affiliates LLC. “Once dropped by the index, there is a silver lining for these stocks…they, on average, outperform the market over the next several years, creating a compelling opportunity for investors,” said Research Affiliates chairman Rob Arnott, who co-authored the study with the firm’s research VP Forrest Henslee. They also found that, over the…  — Continue at ZeroHedge News : Read More