EMH

DANIEL.DAVIES at flemings.com DANIEL.DAVIES at flemings.com
Mon Feb 21 04:48:17 PST 2000


Doug wrote


>Efficient market theory isn't what it used to be:


><http://papers.ssrn.com/paper.taf?ABSTRACT_ID=171723>


>New Facts in Finance
>JOHN H. COCHRANE
>University of Chicago; National Bureau of Economic Research (NBER)

[snip]


> Once, we thought that mutual fund average
>returns were well explained by the CAPM. Now, we recognize ``value''
>and other high return strategies in funds, and slight persistence in
>fund performance.

Heheheh. Only a finance academic could sit through the last five years and say that "Value investing" was a high return strategy. And then call it a "fact".

On the other hand, the author of this working paper did manage to get OJ Simpson acquitted, so he can't be all that dense.

dd

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