Bernstein Likes The Value Factor Free Cash Flow… A Lot

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Mark Melin
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There is one value factor that currently looks inexpensive but actually has performed well over time even when it is expensive. That factor, free cash flow, often used for corporate expansion or to pay investors dividends, should be a core or default component of a value investing portfolio, research a May 24 report from Bernstein’s Global Quantitative Strategy team opines.

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Free cash Flow value factor

Free cash flow value factor has reasonable returns without the volatility

In quantitative strategy, correlations between markets and even indicators are sometimes used in the analysis as...

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Mark Melin is an alternative investment practitioner whose specialty is recognizing the impact of beta market environment on a technical trading strategy. A portfolio and industry consultant, wrote or edited three books including High Performance Managed Futures (Wiley 2010) and The Chicago Board of Trade’s Handbook of Futures and Options (McGraw-Hill 2008) and taught a course at Northwestern University's executive education program.