Understanding Market Anomalies in Active Equity Investing

James is an equity analyst at a hedge fund that focuses on active equity investing strategies. Recently, he has been analyzing the effectiveness of various market anomalies, such as the January effect and momentum trading strategies. He knows that some anomalies can be exploited for additional returns and are not fully accounted for by traditional asset pricing models.

In his research, James is particularly interested in the persistence of returns that can be attributed to these anomalies, especially beyond the short term. He comes across three potential anomalies that may offer insights into market inefficiencies.