In this week’s post, I discuss three papers. The first examines a new factor, the Cash Conversion Cycle–while most are discounting factors in the new “Factor Zoo” world, this is definitely an interesting factor to examine. Second, I briefly summarize Larry Swedroe’s paper on Risk versus Uncertainty, and how one can build alternative portfolios to deal with the fact that we make investment decisions in an uncertain world. Last, I examine a post by Tommi, summarizing a paper showing that even institutional investors appear to get distracted.

A Remarkable New Factor: The Cash Conversion Cycle

https://alphaarchitect.com/2019/04/09/a-remarkable-new-factor-the-cash-conversion-cycle/

Additional Link to 1999 CS report.

https://studies2.hec.fr/jahia/webdav/site/hec/shared/sites/jeanjean/acces_eleves/finance%20a%20cour%20terme/synth%C3%A8se.pdf

Investment Strategy in an Uncertain World

https://alphaarchitect.com/2019/04/11/investment-strategy-in-an-uncertain-world/

Distracted Institutional Investors

https://alphaarchitect.com/2019/04/08/distracted-institutional-investors/