GrizzlyRock Capital’s Case Study Conclusion- Stick With Value, Free Cash Flow Is Best

After 18 months of flat performance, GrizzlyRock Capital has decided to take action. To try and establish why their returns are not up to standard, the firm's founder, Kyle Mowery, and the team have put together a style factor white paper, in an attempt to "understand and quantify the potential effects of changing equity market structure on our returns."

The paper is designed to be a natural part of the investment process in a changing landscape. The structure of the equity market has changed significantly over the past decade. GrizzlyRock's paper notes that today, ~20% of U.S. equity assets are managed by quantitative strategies and nearly one-third of assets are passively managed. Against this backdrop, the firm estimates that...