Cambria Investment Management, led by Mebane Faber, is a well-regarded investment firm known for its focus on quantitative and tactical asset allocation strategies. Founded in 2006, Cambria distinguishes itself through its commitment to research-driven, rules-based investing, often challenging conventional wisdom within the financial industry. A core tenet of Cambria’s philosophy revolves around value investing and identifying undervalued assets across various global markets. Unlike many traditional fund managers who prioritize growth stocks, Cambria actively seeks out regions and sectors with low price-to-earnings ratios, price-to-book ratios, or dividend yields relative to their historical averages. This contrarian approach aims to capitalize on temporary market dislocations and long-term reversion to the mean. Cambria is also a strong proponent of trend following. This strategy involves identifying and investing in assets that are experiencing positive price momentum, with the belief that these trends are likely to continue for a period of time. To implement this, Cambria often employs moving average rules and other technical indicators to identify potential entry and exit points in different asset classes. This trend-following approach can be applied to equities, bonds, commodities, and currencies. Another key area of focus for Cambria is the development and management of exchange-traded funds (ETFs). Cambria offers a range of ETFs designed to provide investors with access to various tactical asset allocation strategies, global equity exposure, and alternative investment approaches. These ETFs often incorporate Cambria’s signature value and trend-following principles. Their suite of ETFs provides diverse investment options for investors seeking exposure to different asset classes and strategies, all within a transparent and liquid framework. Factor investing is also central to Cambria’s approach. They often incorporate factors like value, momentum, size, and quality into their investment models. By systematically targeting these factors, Cambria aims to enhance returns and reduce portfolio risk. Their research frequently explores the historical performance of these factors across various market environments, seeking to understand their effectiveness and potential for future success. Furthermore, Cambria emphasizes the importance of diversification and risk management. Their strategies typically involve allocating assets across a wide range of global markets and asset classes to reduce portfolio volatility and improve overall risk-adjusted returns. They also actively monitor market conditions and adjust their asset allocations based on their quantitative models. This dynamic approach allows them to potentially capitalize on opportunities while mitigating potential downside risks. Finally, Cambria’s commitment to transparency and investor education is notable. Mebane Faber is a prolific author and speaker, frequently sharing his insights and research through books, articles, and podcasts. This commitment to education helps investors understand Cambria’s investment philosophy and the rationale behind their strategies.