Insider Factors question

[Whycliffes]

Yes, I agree that there aren’t many inside nodes I have added that collectively provide a better result.

I also think it would be interesting to have a function (a node) around ownership, as there are several academic studies showing that Founder-led companies perform well. I am discussing it here:

Why is Etf (BOSS) so bad at replicating academic findings?

I’m trying to research the returns of Founder led companies: https://anchorcapital.com/founder-led-companies/ I have then looked at the return in BOSS, as well as FIFNX. Which - but with a short history - does not do very well. But then I have gathered all the shares in a Watchlist: "ADBE, ARE, HES, AFG, ADI, BRK-B, SAM, CPT, COF, GIB, CTAS, CPRT, COMMQ ^ 05, CSGP, CCI, DHI, DHR, DLTR, EQT, EL, EEFT, GRMN, MNST, HOLX, INTU, LEN, LPSN, MAR, MCRI, NBIX, NVDA, PCAR, PENN, PXD, PLUG, REGN, RMD, RH…

How can you tell if an approach or a tilt index provides alpha?

Thanks!

Summary:

• A 2010 study performed by Joel Shulman of Babson College and published in the Journal of Risk and Financial Management found that the equity performance of founder-led public companies significantly outperformed benchmarks from 1998 to 2010. The study also found that founder-led businesses dominated their peers in risk and return metrics, including rate of return, sharpe ratio, sortino ratio, alpha, active premium, information ratio, and up capture ratio4.
• In 2006, 26 Fortune 500 companies boasted founder-CEOs. The stocks of these 26 companies returned an average of 18.5% percent annually from 1995 to 2005. Their profit growth was also superior, increasing an average of 19.6% percent, vs. 11.7% for the Fortune 500.5
• A 2007 study concluded, “An equal-weighted strategy that invested in firms where the founder served as CEO from 1993 to 2002 earned an abnormal return of 4.4% annually in excess of the market”6
• In 2009, Fortune’s editorial staff considered 12 candidates as best CEOs of the decade, and “not a single one of the 12 was hired to run a company by its board of directors.” In other words, they were what we consider founders.7
• Founder-led companies on average have grown revenue faster than their peers over the last 5 years,8 and have 31% more patents.9
• A 2010 University of Pennsylvania study showed that small-cap company founder CEOs consistently beat professional CEOs on a broad range of metrics, including return on investment.10
• Finally, in one of the most comprehensive studies on the subject, Bain and Company found that over a 25-year period from 1990 to 2014, founder-led public companies performed 4 times better than all other public companies over that time period.1

Anyway, here is my insider rankfolder:

		<Composite Name="insider " Weight="33.33" RankType="Higher">
			<StockFormula Weight="0" RankType="Higher" Name="InsBuyTrans &gt;= 3 // there were at least 3 insider " Description="" Scope="Universe">
				<Formula>InsBuyTrans</Formula>
			</StockFormula>
			<StockFormula Weight="0" RankType="Higher" Name="InsNetTrans &gt;= 3 // the number of insider insider " Description="" Scope="Universe">
				<Formula>InsNetTrans</Formula>
			</StockFormula>
			<StockFormula Weight="0" RankType="Higher" Name="InsOwnerSh% &gt;= 25 And  InsOwnerSh% &lt;= 75 // inside" Description="" Scope="Universe">
				<Formula>InsOwnerSh%</Formula>
			</StockFormula>
		</Composite>