https://praxiscapital.no/blogg daily 0.75 2024-10-22 https://images.squarespace-cdn.com/content/v1/666805ec7f6c340f4d9eb50f/1729600590567-9FNGYNZQPLA7EPAL05TF/AroHa-2.jpg Blogg https://images.squarespace-cdn.com/content/v1/5ec321c2af33de48734cc929/1589846860504-8WQTCL4WXXZ6JPJL61VH/20140301_Trade-151_0124-copy.jpg Blogg https://images.squarespace-cdn.com/content/v1/5ec321c2af33de48734cc929/1600981741725-RPAB21NKC373E1NWGORK/AroHa_3.jpg Blogg https://praxiscapital.no/blogg/how-often-should-you-rebalance-factor-strategies monthly 0.5 2024-10-22 https://praxiscapital.no/blogg/expectations-management monthly 0.5 2024-08-28 https://images.squarespace-cdn.com/content/v1/666805ec7f6c340f4d9eb50f/9d871a1b-9aee-48d5-9ea3-3bf46ab11697/20+year+probs.PNG Blogg - Expectations management - The graph above shows the drawdown probabilities over a 20 year timeframe. https://images.squarespace-cdn.com/content/v1/666805ec7f6c340f4d9eb50f/d8886c57-696e-417f-9bfc-0d7c5a47d407/Bilello+1.png Blogg - Expectations management - Bilello writes: “The price of admission for receiving the S&P 500’s long-term total return of 10% is suffering through many drawdowns along the way. The current 8.5% drawdown on a closing basis is just the latest in a never-ending series of tests, and it’s actually a mild one at that. The median intra-year drawdown since 1928 is -13%.” Source: https://bilello.blog/2024/the-week-in-charts-8-5-24 https://images.squarespace-cdn.com/content/v1/666805ec7f6c340f4d9eb50f/ba554b3b-f135-4eb7-ad3b-38ee70d86ec2/Bilde2.png Blogg - Expectations management - 2007-2009 Ouch https://images.squarespace-cdn.com/content/v1/666805ec7f6c340f4d9eb50f/1e4dbf23-43d0-4bc1-94a4-051cc46308ad/drawdown+probs.PNG Blogg - Expectations management https://images.squarespace-cdn.com/content/v1/666805ec7f6c340f4d9eb50f/e49a161c-9a1d-469b-a72d-6cc8db932a00/drawdowns.PNG Blogg - Expectations management - Smaller drawdowns are usually indicative of better year end returns - duh. But it seems like even the worst drawdowns typically don’t result in the annual return being all that terrible though. Even drawdowns above 30% typicall only lose about 20% in a year. Not that bad? https://images.squarespace-cdn.com/content/v1/666805ec7f6c340f4d9eb50f/1589abd9-4970-479a-a905-c10fe2da556c/graph+probs.PNG Blogg - Expectations management - The first graph (above) shows the probability of drawdowns of the different magnitudes in a 1 year time period. (The "value" on the x-axis of the t-distribution graph represents the standardized drawdown magnitude in units of standard deviations away from the mean of the distribution (which is 0). In financial terms, the x-axis value tells you how extreme a particular drawdown is relative to the average fluctuation (standard deviation) of returns). https://images.squarespace-cdn.com/content/v1/666805ec7f6c340f4d9eb50f/63299f42-b1b5-4508-a9e0-0dc6f5990773/VIX+2003-2007.jpg Blogg - Expectations management - VIX 2003-2007 Pretty smooth sailing…until it wasn’t https://praxiscapital.no/blogg/blog-post-title-one-anz9j monthly 0.5 2024-07-01 https://images.squarespace-cdn.com/content/v1/666805ec7f6c340f4d9eb50f/7bcc4462-3f9c-41e7-8eb2-970961fd5e81/MSFT+KF.PNG Blogg - Why we use multifactor models - Make it stand out Bloomberg data https://images.squarespace-cdn.com/content/v1/666805ec7f6c340f4d9eb50f/537478a1-ea0b-4301-b5d5-6a4db83fecd6/Top+bottom+quantile.png Blogg - Why we use multifactor models - Top ranked quantile versus bottom ranked quantile There is a meaningful difference in returns between top and bottom ranked stocks across all timeframes. The difference becomes huge over 5 and 10 years. https://images.squarespace-cdn.com/content/v1/666805ec7f6c340f4d9eb50f/5149f6bf-4122-46d8-bce8-d5bc681d1e08/Spearaman.png Blogg - Why we use multifactor models - Interpreting the Spearman rank correlation coefficients across timeframes First of all, it seems the relationship is strongest over the shortest timeframe. Generally, better rankings appear to be associated with higher returns. As would be expected, the relationship is relatively weak (but in my opinion exploitable). https://images.squarespace-cdn.com/content/v1/666805ec7f6c340f4d9eb50f/cac2be4f-60e6-4573-b9d8-258afbd79919/IMOM.png Blogg - Why we use multifactor models - Idiosyncratic momentum For IMOM, the highest ranked stocks outperform all other quintiles over every timeframe except 10 over years, where it comes in second, narrowly behind quantile 2. The two bottom quintiles perform the worst across all timeframes. Top quantile IMOM names perform better than top quantile ROE names across all timeframes. https://images.squarespace-cdn.com/content/v1/666805ec7f6c340f4d9eb50f/b4aaf252-e00d-433f-8da4-97b19f74e438/RAnks+5+yr+10+yr.png Blogg - Why we use multifactor models - Make it stand out Whatever it is, the way you tell your story online can make all the difference. https://images.squarespace-cdn.com/content/v1/666805ec7f6c340f4d9eb50f/97ef5140-e704-46b4-b5fe-3b17c9aa2cdb/Comb+quantile+returns.png Blogg - Why we use multifactor models - Returns across quantiles The top ranked stocks tend to outperform lower ranked stocks across all timeframes. https://images.squarespace-cdn.com/content/v1/666805ec7f6c340f4d9eb50f/314d8008-ebde-4d1f-ba9c-70b47e26a3a2/Ranks+3m+1+yr.png Blogg - Why we use multifactor models - Make it stand out Whatever it is, the way you tell your story online can make all the difference. https://images.squarespace-cdn.com/content/v1/666805ec7f6c340f4d9eb50f/b01c5bb1-c7ba-4737-8291-d7bf1898df38/ROE+results.png Blogg - Why we use multifactor models - 5-year average ROE The stocks with the highest 5 year avg ROE (quintile 0) have the highest total returns over the next 3 months, and also do very well over the 1,2 and 3 year measurement periods. Over 5 a years the relatonship is less clear, and over 10 years, the lowest quantile ROE stocks outperform markedly. It should be noted though that the bottom quantile return over 10 years is driven by a few positive outliers - the median stock in the bottom quantile does poorly. https://images.squarespace-cdn.com/content/v1/666805ec7f6c340f4d9eb50f/08a221d3-92d1-4652-b796-940cc5b6c90d/MSFT.PNG Blogg - Why we use multifactor models - Make it stand out Bloomberg data https://images.squarespace-cdn.com/content/v1/666805ec7f6c340f4d9eb50f/98f540a5-5a07-4f95-971d-779516b3d3d3/Predictors+and+returns.png Blogg - Why we use multifactor models - Make it stand out Whatever it is, the way you tell your story online can make all the difference. https://praxiscapital.no/hvorforpraxis daily 0.75 2025-09-25 https://praxiscapital.no/om-praxis-capital daily 1.0 2025-09-25 https://images.squarespace-cdn.com/content/v1/666805ec7f6c340f4d9eb50f/1718266626868-2Z5HAYCJZ45S04TNXG1M/image-asset.jpeg Om Praxis Capital https://images.squarespace-cdn.com/content/v1/666805ec7f6c340f4d9eb50f/45becc33-1d53-4613-8858-88d82efc98e6/dark_theme_python_computer.png Om Praxis Capital https://images.squarespace-cdn.com/content/v1/666805ec7f6c340f4d9eb50f/1718266959115-GOKY8MK6KW1652SIDF7K/image-asset.jpeg Om Praxis Capital https://praxiscapital.no/contact daily 0.75 2025-04-24 https://praxiscapital.no/commercial daily 0.75 2025-04-24 https://images.squarespace-cdn.com/content/v1/624b3c6d0861883611fb6b52/1649097851119-CQ37ZOZOUXNOGBJ4IENI/Stocksy_txp9c995bd1cMI100_Large_1188910.jpg Commercial Design https://images.squarespace-cdn.com/content/v1/624b3c6d0861883611fb6b52/1649097851138-2YLGNXMMPSR2WEYLC26U/Stocksy_txp9c995bd1cMI100_Large_1192032.jpg Commercial Design https://images.squarespace-cdn.com/content/v1/624b3c6d0861883611fb6b52/1649097851147-N7OZ40QGA9H36AI9RN8J/Stocksy_txp9c995bd1cMI100_Large_1192030.jpg Commercial Design https://images.squarespace-cdn.com/content/v1/624b3c6d0861883611fb6b52/1649097851129-F78VSAXX9D0LBAJ4LTGK/Stocksy_txp9c995bd1cMI100_Large_1183959.jpg Commercial Design