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Constructing a high Sharpe ratio portfolio, paired with sensible leverage, is the key to achieving meaningful returns with tolerable risk. We will make some simplifying assumptions to build intuition,...

Historically, long-short equity factors have provided positive mean returns with low correlation to other assets. Most retail investors use long-only products, meaning they invest only in the long leg...

Correlations largely determine the benefits of diversification. The lower the correlation between assets, the better the diversification. It is common practice in finance to measure correlations using...

Why would anyone with a long enough time horizon invest in anything other than equities, given they have the highest expected return? The discussion has reignited following an article titled Beyond...