What Happens When The Wizard Vanishes?

The author of What Works on Wall Street is selling his mutual funds to focus on private clients. That doesn't exactly work for investors in those funds

Jim O'Shaughnessy's 1996 best-selling What Works on Wall Street would have seemed too audacious if it weren't so alluring. From an ocean of data covering more than 40 years, O'Shaughnessy distilled the few indicators, such as a low price-sales ratio, that really seemed to pay. "Investors can do much better than the market," he wrote, "if they consistently use time-tested strategies that are based on sensible, rational methods." I read that and thought, Yes!

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