Insights

Garrett, Bernd and Andrew have all featured in a variety of articles, essays and videos, which you can access here:

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Coronavirus Brief

Investors are concerned about the effect the coronavirus outbreak may have on their savings. In turn, markets have fallen sharply as the virus has spread outside China.

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The expected return of the value premium

At the end of the decade, growth stocks traded at a substantial premium to value, likely creating a tailwind for the future relative returns of value stocks.

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It seems we have become very tribal

We like to polarise people. And we instinctively identify with those who appear to share our views. But people are far more complex than that.

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Is Value the Whole Story?

Value and profitability factors form an extremely attractive combination. We illustrate the strong diversification benefits of combining them.

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Comparing Value Metrics

It is widely accepted that there is a Value effect in stock returns and that, in the long run, there is a premium for holding Value stocks. A key question is how best to define Value.

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Are we obsessed with Brexit?

2019 will doubtless go down in history as the year that Britain became obsessed with Brexit. Just now, there seems to be no escaping it.

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Article

Value Investing

Discussing value as an investment style relative to growth in the current market environment.

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Article

The Small-Cap Dilemma

Examining the benefits of small caps as an asset class as well as the challenges associated with it for institutional investors.

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Educational Videos

Here are some educational videos which we’ve made or featured in, which help to explain some of the principles which make up our investment approach:

GSI – Beyond the Cap-Weighted Index

Dr. Nick Motson of Cass Business School discusses issues with investing in market-weighted index portfolios, which tend to be heavily concentrated in a small number of mega-cap stocks. Alternative, more diversified approaches have  generated superior risk-adjusted returns in the past, mostly due to their exposure to value and size factors.

A Dummy’s Guide to Smart Beta, part three

The term “beta” was first introduced by Nobel Laureate William Sharpe in the 1960s. In simple terms, it denotes the risk of the stock market. But in the intervening half a century, several other risk factors have been identified and quantified. Features Garrett and Bernd on GSI’s model, which increases diversification in a cap-weighted portfolio to smooth out the highs and lows.

 
 

Passive Investing Theory, part four: Portfolio Theory

Diversification has been called ‘the only free lunch in investing’ and is the driver behind Portfolio Theory, developed in 1952 by Harry Markowitz and later expanded upon by William Sharpe in his Capital Asset Pricing Model, and Eugene Fama and Kenneth French in their Three Factor Model. With contributions from Garrett and Bernd.

 
 

Passive Investing Theory, part two: The Random Walk

Exploring the foundations of passive investing and the men who brought it to global significance. This video describes the Random Walk theory: the belief that share prices are not predictable as they are based on reaction to information that is being fed into the market completely randomly. Features Bernd, alongside other industry specialists.