Financial Modeling Archives - Fundopedia

Artificial Intelligence…

Why the Next Cycle May Be Driven by Operating Leverage

6 Jul 2026July 5, 2026

The last equity cycle was shaped heavily by discount rates. The next one may be judged by something more operationally demanding: whether companies can convert incremental revenue into disproportionately higher…

Capital Market…

How ERM Disclosures Impact Equity Valuation

26 Jan 2026January 26, 2026

Enterprise risk management (ERM) disclosures are sections of a company’s public reporting that describe how it identifies, assesses, manages, and governs enterprise-wide risks that could materially affect cash flows, financial…

Alternative Investments…

Optimizing Long/Short Strategies in Media & Communications

5 Jan 2026January 5, 2026

As a portfolio manager running a long/short sector sleeve in communications and media—spanning platforms, streaming and content, distributors, telecom/connectivity, adtech and agencies, and publishers—our process emphasizes disciplined risk control and…

Asset Allocation…

Investing in Facilities Services: Fundopedia’s Research Framework

22 Oct 2025October 22, 2025

We have been allocating assets to the commercial and facilities services sector over the past few years. This sector encompasses outsourced services for commercial buildings and infrastructure, with key business…

Asset Allocation…

Saudi Arabia’s Vision 2030: Transforming Investment Strategies

14 Aug 2025August 14, 2025

Saudi Arabia’s investment landscape is being reshaped by Vision 2030, which aims to diversify the economy beyond oil by promoting mega-projects such as NEOM and Red Sea Global, along with…

Alternative Investments…

Key Differences in Economic Trends: 2021-2025 vs 1970s

31 Jul 2025July 31, 2025

Long-Horizon Return Series: GFD, CRSP, Shiller, Bridgewater Global Financial Data (GFD) provides some of the most extensive datasets available, including fixed-income, equity, inflation, and macroeconomic data that date back centuries,…

Artificial Intelligence…

AI-Powered Stock Forecasting Model in Vietnam

26 Mar 2025March 27, 2025

The goal of our quantitative model is to predict short-to-medium-term stock price direction and risk-adjusted return potential. We combine top-down macro views with bottom-up stock selection, enhanced by data-driven and…

Alternative Investments…

Global Macro Hedge Fund Strategies and Forecasting Models

18 Mar 2025March 19, 2025

Global macro investing involves the analysis of macro trends such as economic cycles, central bank policies, geopolitical events, and capital flows to generate alpha across various asset classes. Our approach…

How to Analyze Private Auto Insurance Carriers?

20 May 2024September 19, 2024

Analyzing private auto insurance carriers involves a comprehensive assessment of various financial, operational, and market-related factors. Financial Performance Examine trends in premiums written, revenue growth, and profitability. Analyze the net…

Artificial Intelligence…

Generative AI Applications and Solutions: A View from Asset Management

17 Jul 2023September 19, 2024

Generative AI, a branch of AI that involves generating new data, content, or media, has found applications in the asset management industry. At Fundopedia, we started building different generative AI…

Behavioral Finance…

The Halloween Effect Revisit

4 Nov 2013January 23, 2024

Historically, stocks tend to outperform in November, stall in December and January, and then resume higher in February and March. Stock markets have seasonal effects and calendar anomalies, which challenge…

Asset Allocation…

Theory Versus Practice: Rethink Your Portfolio Optimizers

9 Oct 2013October 10, 2013

Portfolio optimization is a mathematical process of assigning the proportions of various asset classes or investment styles to be held in a portfolio, in a way as to construct the…

Asset Allocation…

Balancing Risk and Reward: Asset Allocation

8 Oct 2013October 16, 2013

The Importance Asset Allocation Many portfolio managers believe that asset allocation is one of the most important decisions that investors make: From a portfolio design standpoint, portfolio theory asserts that…

Alternative Investments…

From Modern Portfolio Theory to Pioneering Portfolio Management: The Endowment Model

6 Oct 2013October 15, 2013

Implications of Modern Portfolio Theory Traditional and widely used institutional policy portfolios commonly consisted of a majority of U.S. equities and a reciprocal proportion of U.S. bonds, e.g., 60% stock/40%…

Earnings Manipulation Detection and The M-Model

30 Jul 2013July 31, 2013

Management quality is one of the most important elements in choosing an investment; management is incentivized to hit the target and increase long-term earnings, in reality, this does not necessarily…

Financial Modeling…

Fixed Income Portfolio Attribution Frameworks

22 Jun 2013August 26, 2025

Fund managers market their strategy products as that they are able to achieve consistent competitive performance through particular repetitive decision-making process; attribution is an extremely useful tool in verifying their…

Financial Modeling…

Financial Instability Hypothesis, Debt Deflation, and Debt-to-GDP

19 Apr 2013September 2, 2013

The debt-to-GDP ratio is one of the indicators of the health of an economy; governments aim for low debt-to-GDP ratios which most likely indicate that they can stand up to…

U.S. Mid Cap Equity Fund Investment Philosophy and Approach (Core, Value, Growth)

27 Feb 2013July 1, 2013

In the U.S., mid-capitalization companies are typically defined as those having a market capitalization range of $2 billion to $10 billion. During the period of January 1979 through December 2012,…

Alternative Investments…

Alternative Investments in a Portfolio

23 Jan 2013September 12, 2023

Traditional asset classes such as stocks, bonds, and cash tend to be highly correlated with each other during the down markets. The long-only investments may not meet the changing needs…

Financial Modeling…

Robert Merton’s Approach for Macrofinancial Risks 罗伯特·默顿的主权信用风险模型

31 Oct 2012July 1, 2013

Traditional Macrofinancial framework vs. Robert Merton’s Macrofinancial Framework The traditional approach to measure sovereign credit risk is based upon the assessment of a country’s ability and willingness to service its…

Asset Allocation…

Behavioral Portfolio versus Mean-Variance Portfolio

19 Oct 2012September 14, 2022

Investors that follow the mean-variance portfolio (MVT) theory (Markowitz, 1952) determine optimal aggregate portfolios on the efficient frontier by balancing risk aversion and return preference. Many investors have difficulty specifying…

Behavioral Finance…

Time Series Momentum, Cross-Sectional Momentum, Market Return Drivers

10 Aug 2012July 20, 2023

Traditionally, annualized return volatility is believed to decrease over long periods because of mean reversion. In fact, stocks are more volatile over long periods because of parameter uncertainty. In order…

Financial Modeling…

Portfolio Optimization, Risk Aversion, Constraints

21 Jul 2012March 31, 2025

Portfolio Optimization Since an investor can trade risk for return along the efficient frontier, the motivation of optimizing a portfolio originates from the idea that a greater expected return for…

Financial Modeling…

Valuation Multiples, BtM, Tobin’s q, and EM

10 Jul 2012March 31, 2025

Empirical studies indicate that value stocks have beaten the market over the long run, which are characterized by low multiples: price-to-earnings (P/E), price-to-book (P/B), enterprise value (EV), earnings before interest,…

Financial Modeling

Financial Research, Financial Model, Market Efficiency

21 Jun 2012March 28, 2025

“If you give CAPM and VaR to monkeys, they are going to create financial crisis.” This is one of the most vivid sayings I have heard these days, although I…