@article {Guerard70, author = {John B. Guerard}, title = {The Development of Mean{\textendash}Variance-Efficient Portfolios in Japan and the United States: 25 Years After; or, What Has Driven Stock Selection Models in Japan and the United States? }, volume = {26}, number = {1}, pages = {70--93}, year = {2017}, doi = {10.3905/joi.2017.26.1.070}, publisher = {Institutional Investor Journals Umbrella}, abstract = {Stock selection models have been, and can be, effectively employed in Japan to deliver excess returns. In 1992, the initial year of this journal{\textquoteright}s publication, Guerard and Takano reported the effectiveness of mean-variance efficient portfolios for the Japanese and U.S. equity markets. In this update to celebrate 25 years of The Journal of Investing, the author uses a commercially available global database, FactSet, for the 2002 to June 2016 time period to address stock selection composite models and mean-variance efficient portfolios in Japan and the United States. He reports three results: (1) the original stock selection continues to be effective in Japan and the United States in the 2002 to June 2016 period; (2) the mean-variance efficient portfolios outperformed in Japan and the United States in the 2002 to June 2016 period in 67\% of years post-publication; and (3) the Guerard and Takano stock selection model is not the result of data mining.TOPICS: Security analysis and valuation, statistical methods, developed}, issn = {1068-0896}, URL = {https://joi.pm-research.com/content/26/1/70}, eprint = {https://joi.pm-research.com/content/26/1/70.full.pdf}, journal = {The Journal of Investing} }