We Pursue a Simple Mission:

Learn, build,
share, repeat.

We constantly learn more about investing, build disciplined strategies to capture the best of what we've learned, and share our broad findings with other curious investors.

PHILOSOPHY & PROCESS
FOLLOW OUR RESEARCH
PHILOSOPHY & PROCESS
FOLLOW OUR RESEARCH

O’Shaughnessy Quarterly Investor Letter Q1 2019

By Patrick W. O’Shaughnessy, Chief Executive Officer and Portfolio Manager

In this quarter’s letter, Patrick discusses two examples of how we are trying to build accumulating advantages at OSAM. First, by adding to our “research graveyard,” and second by building a web of interconnected software-based tools.

ML & Investing Part 1: From Linear Regression to Ensembles of Decision Stumps

By Kevin Zatloukal, Ph. D

The idea of applying machine learning to finance and investing has become a popular topic of discussion recently, and for good reason. As its use becomes widespread, machine learning (ML) has the potential to change almost every part of society, both by automating routine activities and by improving performance in difficult activities. In all likelihood, investing will be no exception.

Alpha within Factors

By Jesse Livermore+, Chris Meredith, CFA, and Patrick O’Shaughnessy, CFA

In Factors from Scratch, we showed that value investing works through a re-rating process. The process begins when the market develops an expectation that the earnings of certain companies will decline or grow at depressed rates into the future. The market then prices those companies at a discount relative to their current earnings, turning them into "value stocks." Over the short-term, the market usually ends up being right in its expectations: value stocks usually do go on to experience declines or slowdowns in their earnings, particularly in comparison with the rest of the market. But over the long-term, they usually recover and return to normal growth. When the market prices value stocks, it tends to underestimate the likelihood and extent of their eventual recoveries.

FIRM

OSAM at a Glance

12 years Managing client money
$6.0B Assets under management and advisement
17 strategies Our model applied: Micro to Large cap; US to Global
85,241 Stocks studied across six decades of history
Managing client money
Assets under management and advisement
Our model applied: Micro to Large cap; US to Global
Stocks studied across six decades of history
SEPARATE ACCOUNT STRATEGIES

Separate Account Strategies

We build portfolios with significant factor advantages in different style segments, market capitalization ranges, and geographic regions. Our portfolios tend to have low excess return correlation with other active strategies, little overlap with market indexes, and low active costs. We have routinely worked with clients to build custom solutions.

LEARN MORE
OUR TEAM

Our Team -
Consistency, Creativity, and Alignment

Investment success requires constant exploration, disciplined implementation, and skin in the game. We have built a team dedicated to applying our style of investing for the long term, whose interests are aligned with our clients and fellow OSAM colleagues.

OUR TEAM

Owned by 13 principal employees
Our money is aligned with yours: no personal trading, 100% of our Principals are invested in OSAM strategies
Our principals have been with the firm an average of 11 years.
Jim O'Shaughnessy
Principal, Chairman and Co-Chief Investment Officer, Portfolio Manager

BLOG & RESEARCH

Blog & Research

OSAM is committed to conducting interesting new research on markets and sharing our findings with investors. We want to manage money on behalf of committed, long-term investors, which means sharing what we learn. To follow our journey, you can read, listen and watch.

  • March 2019 O’Shaughnessy Quarterly Investor Letter Q1 2019 March 2019
  • January 2019 O’Shaughnessy Quarterly Investor Letter Q4 2018 January 2019
  • December 2018 ML & Investing Part 1: From Linear Regression to Ensembles of Decision Stumps December 2018

The statements on this page are qualified in their entirety by the disclaimers and limitations contained here.