Investing in micro and nanocap stocks via multi-factor strategies | Author of Ranking, Right On! | Education, No Advice.

Joined May 2025
Two years ago, I built a simple system based on just 7 factors. Since then, it’s been consistently outperforming. Backtests show it has outperformed every single year since 2002 — except 2019. I wrote a free e-book explaining the system. You can use it yourself. No paywall.
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I’ve spent a few days thinking about the Tesla Roadster reveal and landed somewhere I haven’t seen much discussion. I’m neither a Tesla fanboy nor a Tesla hater. And I couldn’t care less whether what we saw technically qualifies as a flying car. Three takeaways: (1) The risk of that live demonstration going horribly wrong was real. Almost no CEO would willingly expose their company to that kind of public humiliation for a product with so little financial upside. Elon did. (2) That willingness to attempt the seemingly impossible is what makes Tesla special. It’s also arguably Elon’s greatest contribution to America. He’s helped bring back something we’ve lost. The American spirit of chasing big scary ideas that most people think are impossible. That mindset is spreading across a new generation of founders and its long term impact on America’s future could dwarf anything Tesla ever sells. I think this is deeply underappreciated. (3) Can we just acknowledge how insanely cool that moment was? We’ve reached a strange place culturally where even extraordinary feats of human ingenuity immediately become arguments about why they don’t count. Not everything needs to be a debate. Sometimes we should just be able to stand back together and marvel at what humans are capable of. I’ve been both bullish and critical of Tesla’s ambitions over the years. But watching Elon and his team push the boundaries of what’s possible reminds me why I’m glad we have him. Whether the Roadster ever makes Tesla a dollar or impacts $TSLA stock price is almost beside the point. We need more people willing to risk failure in pursuit of things the rest of us think are impossible. Because when they succeed we all win.
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Replying to @AgustinLebron3
Speaking off LLms, I was watching your lecture 3 yesterday and came up with this little game with claude claude.ai/artifact/95HpDTNjk… btw lectures are good thanks, very intuitive explanation so far.
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When I create factors or features, time stands still and it feels like I am dreaming. I love doing it. With my best ideas, I couldn't put into words immediately why I got the result, it feels like it just expressed itself without me.
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Lovely Companies in the last few weeks...
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Cavemen Issues Dire Warning That The Wheel Is Going To Eliminate Countless Jobs
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It's official. I have been outed by OpenAI to be a Cyber Criminal. I appealed and lost. No further appeals will be considered. My crime? A 90-year old bachelor passed away. My father-in-law (the bachelor's closest friend) is responsible for his few possessions. He asked if his 5 year old iPad could be wiped of personal information and updated. I needed help from ChatGPT to reformat the glitchy device. Then I discovered it was activation locked. I asked ChatGPT to walk me through the process of removing it. It showed me the options - none of which could work. ▫️ The man is estranged from his family, he didn't save a receipt from 5 years ago, and he died without a will. I asked for any other way to remove the lock. An hour or two later an e-mail came in and said I was guilty of Cyber Abuse. To be fair, I only got a warning. But I am one innocent question away from a lifetime ban. I feel there is a gap in the system. If someone reviewed my account they would see quant research, a creative fiction book I am writing and a couple random posts trying to get an old iPad working. Not exactly the workings of a criminal mastermind. Any advice on how to get a human in the OpenAI Trust & Safety department to review this matter would be most appreciated. @OpenAIDevs @romainhuet
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For EU-Quants looking to build a verifiable track record: iMaps Capital offers a structural moat that few can compete against. While not free, setting up an ETI here costs 50–90% less than a US ETF listing. It’s the most efficient path to market for EU investors. Interested in setting one up? Get in touch: imaps-capital.com/get-in-tou… They are super friendly and will support your idea!
First pitch to iMaps Capital is out! The AI Factor Research GmbH has officially started the process to launch an ETI — a listed, actively managed exchange-traded instrument — on our AI Factor Strategy Book (long only), built via @P123Finance. Early stage. Nothing signed yet. But today we start! imaps-capital.com/ @iMapsCapital
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Operating income acceleration. Blue = top 5% Orange = bottom 5%
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Which stocks have driven most of the index’s performance from September through today? Here are the results for the 10 largest companies in the S&P 500 through today. To put it simply: if your portfolio didn’t include any of these stocks, you most likely underperformed during this period. What do you think about this?
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Discretionary investors make fun of "quants". Acting as though their days are over. Then they continue to outsource their research process to an LLM. Lol. They fail to understand that automating your due diligence process via factor investing is a way better alternative.
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I just did a studio podcast and had dinner with with @ethanrkho. He's an impressive fellow, far more than I realized before meeting him in person. Ethan's podcast has **by far** the highest signal to noise ratio of any hedge fund podcast today.
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You can’t compete with people having more fun than you
It’s October 6, which means there are only 79 days until Christmas. So here’s our full interview with Rick Dungey, executive director of the National Christmas Tree Association: 1:50 - How the Christmas tree industry works 3:45 - The economics of growing a crop that takes 6-8 years to yield 7:15 - How a Christmas tree gets selected for the White House 10:25 - When should you actually buy your Christmas tree? 12:20 - How to keep your tree alive 13:45 - The fight against tariffs and imported fake trees from China 15:40 - Trees for Troops
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Ran it in EU & Canada. 21%+ CAGR 1999 - now. Exact same 7 factors. 14% YTD.
Today, I ran it 1999 onwards. 36% CAGR 1999 - now, with just 7 factors. E-book YTD: 19%.
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The Europe micro to mid model at P123 is a real banger. Nice complimentary perk for members.
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I see we are having a high quality rally with blue chips like SPCX MRNA and TWST leading
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Nike borrowing costs at IBKR only 0.40%. Based on 'reading the news', you would think that shorting $NKE is priced in. But it isn't.
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having @orrdavid on the pod again soon genuinely one of the best hedge fund managers right now what is a must ask?
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The system ranks stocks via a composite score from 7 factors: growth, valuation, quality, low volatility, sentiment, technicals and size. RankEquity details the exact rules, formulas and implementation in the free e-book at rankeq.com (no paywall). It has shown strong out-of-sample results versus benchmarks like the Russell 2000.
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Reading “A fabulous Debt”. Great read so far!
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Today, I ran it 1999 onwards. 36% CAGR 1999 - now, with just 7 factors. E-book YTD: 19%.
Two years ago, I built a simple system based on just 7 factors. Since then, it’s been consistently outperforming. Backtests show it has outperformed every single year since 2002 — except 2019. I wrote a free e-book explaining the system. You can use it yourself. No paywall.
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