The Sophisticated and the Simple: The Profitability of Contrarian Strategies from a Portfolio Manager’s Perspective

Valuation signals have been among the most popular with equity portfolio managers and have recently attracted significant interest from cross-asset managers.

Author(s):

Daniel Giamouridis

Research Associate, EDHEC-Risk InstituteAssistant Professor of Finance, Athens University

Chris Montagu

Director and Head of Global Quantitative Research - Europe, Citi Investment Research

Given a large variation of techniques and theories with regard to how value is measured, this article investigates the efficacy of alternative value measures. We consider a cross-section of simple and sophisticated alternative measures and focus on comparison metrics that are of primary interest for equity portfolio managers. Our results show that sophisticated valuation modelsalthough not universallyare superior to simple valuation models in many respects. Thus, we conclude that sophisticated models have interesting attributes and in general should be considered an additional if not primary perspective on equity valuation and portfolio management.
Pdf
The Sophisticated and the Simple: The Profitability of Contrarian Strategies fro...
(-1.00 B)
Type: Working paper
Date: le 29/06/2011
Extra information : For more information, please contact Joanne Finlay, EDHEC Research and Development Department [ joanne.finlay@edhec.edu ] The contents of this paper do not necessarily reflect the opinions of EDHEC Business School. 
Research Cluster : Finance

See Also

LegalEDHEC present to foster legal innovation
News
- 20-06-2018
On major political subjects, as well as on legal innovation, the LegalEDHEC Research...
 THE ECONOMETRIC SOCIETY - NORTH AMERICA SUMMER MEETING - June 2018
News
- 19-06-2018
Two PhD in Finance alumni Andrea Tarelli, PhD (2014) and François Cocquemas, PhD (2016...
Great success for the 25th EDHEC Raid
News
- 19-06-2018
"A big thank you to the whole Raid EDHEC team! A top team for an incredible raid. I can...
EDHEC ranked in the world’s top 3 business schools for Finance by the Financial Times
News
- 18-06-2018
EDHEC Business School has consolidated its standing in the Financial Times global...