top of page

Factor Definitions

FACTOR
DEFINITION
Momentum
Twelve month momentum, skipping the most recent month
R&D/EV no-financials
Five-Year R&D Spending, Decreasing Weights/ Enterprise Value; Financials excluded
R&D/Sales no-financials
Five-Year R&D Spending, Decreasing Weights/ Sales; Financials excluded
Rate_Beta
Sixty month regression beta to % change in 10 year treasury yield
Reversal 1M
Last month's total return; low minus high
ROA
Net Income/Total Assets
ROE
Net Income/Total Equity
ROIC
Net Operating Profit After Taxes/Invested Capital
Sales/Employee
Sales/Employee
Sales/Price
Sales/MarketCap
Size
log market cap
VALUE
Blends earning value, book value, sales value

Factors are used in long-short portfolios based on factor score. Polarity is long the highest value, and short the lowest value, except for Reversal. Portfolios are rebalanced monthly.

bottom of page