Academic Evidence – Abacus FCF Advisors

Apr 04

Exploring Investment and Profitability: Does this Alternative Three-Factor Model Improve Return Forecasting?

By Abacus FCF Advisors Academic Evidence No Comments

Investors are always seeking to unravel the drivers that underlie equity price and stock performance. Several models have been developed over time trying to solve the puzzle. The Capital Asset…

Mar 22

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Predicting Stock Returns and Enhancing Portfolio Performance with Cash-based Operating Profitability

By Abacus FCF Advisors Academic Evidence No Comments

Investors have long sought to identify reliable predictors of stock returns to maximize their investment performance. One area of interest has been the role of accounting measures such as accruals,…

Mar 15

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Implications of Accruals and Growth on Predicting Future Profitability and Market Mispricing

By Abacus FCF Advisors Academic Evidence No Comments

In contrast to cash flow, the growth in long-term net operating assets and accruals display a lower degree of persistence in their capacity to gauge future earnings performance. This disparity…

Investors cannot invest directly in indexes. The performance of any index is not indicative of the performance of any investment and does not take into account the effects of inflation and the fees and expenses associated with investing. Past performance is not an indication or guarantee of future results. The use of such an investment strategy does not guarantee against the risk of loss and there is risk that FCFQM selected stocks may underperform the markets, the relevant index or securities selected by other managers with similar investment objectives and investment strategies. In evaluating a company’s ESG scores, FCF Advisors relies upon information and data obtained through voluntary or third-party reporting that may be limited, incomplete, inaccurate or unavailable, or present conflicting information and data with respect to the company, which in each case could cause FCF Advisors to incorrectly assess such company’s business practices with respect to its ESG practices. Further, different methodologies may be used by the various data sources that provide ESG data. FCF Advisors claims compliance with the Global Investment Performance Standards (GIPS®) and has prepared and presented this report in compliance with the GIPS standards FCF Advisors has been independently verified for the periods November 1, 2011 through December 31, 2021. The verification report is available upon request. A firm that claims compliance with the GIPS standards must establish policies and procedures for complying with all the applicable requirements of the GIPS standards. Verification provides assurance on whether the firm’s policies and procedures related to composite and pooled fund maintenance, as well as the calculation, presentation, and distribution of performance, have been designed in compliance with the GIPS standards and have been implemented on a firm-wide basis. Verification does not provide assurance on the accuracy of any specific performance report. FCF Advisors is an independent investment management firm that was established in 2011. FCF Advisors Company manages portfolios with one style: focusing on free cash flow. The Firm was rebranded from TrimTabs Asset Management effective November 29, 2021 following board approval. GIPS® is a registered trademark of CFA Institute. CFA Institute does not endorse or promote this organization, nor does it warrant the accuracy or quality of the content contained herein. FCF’s list of broad distribution pooled funds and composite descriptions are available upon request. For supporting research on why we believe Free Cash Flow is a superior current profitability indicator compared to earnings when it comes to Quality investing, click here - https://fcf-advisors.com/free-cash-flow-factor-exploring-strong-and-sustainable-profitability/