Bernstein Likes The Value Factor Free Cash Flow… A Lot

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 has reasonable returns without the volatility

In quantitative strategy, correlations between markets and even indicators are sometimes used in the analysis as a key insight benchmark into the validity of a market trend or used as part of the investment thesis. What...