Style of Picks

Quality strategy

Profitability / Quality Factor

Buy the businesses that turn their assets into profit most efficiently — a “quality” tilt that Novy-Marx showed rivals value itself as a source of long-run excess return.

Multi-year holding; judge over 3–5+ yearsIntermediate

Robert Novy-Marx, “The Other Side of Value: The Gross Profitability Premium” (2013)