The Fiscal Cliff and Your Portfolio

There are a few shops that I consider to be absolute must reads for everything they publish. Research Affiliates, GMO, and Leuthold are a few such shops we have featured on The Idea Farm, and this month’s research note by O’Shaughnessy Asset Management is another one.  Jim wrote the excellent “What Works on Wall Street: A Guide to the Best Performing Investment Strategies of All Time“, a classic quant read.

Their research style is right up my alley – lots of pictures and charts backed up with plenty of data and original thinking.  You can access their archives from this link that includes some great pieces on “The Fiscal Cliff and Your Portfolio” and “Stocks, Bonds, and the Efficacy of Global Dividends”.

A few pics below before the download:




The Most Difficult Environment for Generating Income in 140 Years





O’Shaughnessy Asset Management is a Stamford, Connecticut based quantitative money management firm. We deliver a broad range of equity portfolios to individual investors, institutional investors, and the high-net-worth clients of financial advisers. We also manage mutual funds in the United States as well as serving as a sub-adviser to a family of Canadian mutual funds through the Royal Bank of Canada.

Our investment strategies are based on the research of our CEO Jim O’Shaughnessy, widely regarded as a pioneer in quantitative equity analysis. Jim and his team have identified the characteristics that have led to successful investing over the last fifty years, and it is these characteristics that form the foundation of our strategies. As of December 31, 2012 Jim and his team managed approximately $4.8 billion.


Our philosophy is that the best investment strategies are devoid of emotional decision-making. We believe that many conventional managers fail because they tend to overlook fact-based fundamentals in favor of attractive, colorful stories about a company or a stock. At O’Shaughnessy Asset Management, we use stock selection strategies based on long term, empirical evidence. Our strategies are historically tested and rigorously implemented. We do not seek to deviate from our strategies, giving our investors a process they have been able to count on for years.

Unlike most quantitative money managers, we are happy to disclose our investment process to our investors. Most other quantitative investment managers put their strategies in a “black box,” keeping investors in the dark about their portfolios or how they may change over time. Our strategies are in a clear, “Lucite box,” because we believe that people should understand how their investments work.

We offer a broad range of equity strategies, from small cap to large cap, growth to value, including multi-capitalization and international strategies. Many of our investment strategies rank as leaders within their peer groups. Please review our individualseparate account and mutual funds strategies to learn more.