Celebrating Groundbreaking Research with Giants of Finance: Robert Novy-Marx

Since 1993 and the publication of the Fama-French three-factor model, academia and members of the investment industry have proposed more than 400 other factors. Most of those lack a strong theoretical underpinning or additive value. However, in 2013, an academic out of the University of Rochester, Robert Novy-Marx, published an influential paper that showed profitability is a long-term reliable driver of differences in expected stock returns, just like size and value. This catapulted profitability, also known as quality, into its role as a key factor for systematic equity strategies.

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Robert J. Pyle, CFP®, CFA, AEP® founded Diversified Asset Management, Inc., in 1996 to provide personalized, comprehensive wealth management services to successful individuals, families, single women, and business owners. His specialty is addressing the complex financial needs of self-employed professionals, corporate executives, and small-business owners. Our disclosure can be found here. The views, opinion, information, and content provided here are solely those of the respective authors, and may not represent the views or opinions of Diversified Asset Management, Inc. Diversified Asset Management, Inc. cannot guarantee the accuracy or currency of any such third party information or content, and does not undertake to verify or update such information or content. Any such information or other content should not be construed as investment, legal, accounting, or tax advice.