Ang Warns About Value

BlackRock’s managing director Andrew Ang is urging investors to be cautious in how they return to the long-underperforming value factor, according to a recent article in Institutional Investor. Although several big-name factor investors argue it’s time for investors to buy inexpensive value stocks—including AQR’s Cliff Asness and Research Affiliates founder Rob Arnott—Ang warns to exercise caution, suggesting that some might be tempted to “buy into the value factor simply because it appears inexpensive,” the article… Read More

BlackRock’s Ang Favors Momentum

In a recent interview with Barron’s, BlackRock’s head of factor investing Andrew Ang said he favors momentum stocks. Here are some highlights from the interview: While Ang does not believe in market-timing in and out of factors, he leans toward a “multifactor combination” and rotation of factors throughout an economic cycle. “Our biggest theme,” he adds, “is that we are overweight momentum. Momentum has momentum itself right now.” He mentions the FAANG stocks as major… Read More

BlackRock’s Ang on Factor Investing

Andrew Ang, who runs factor investing at BlackRock, argues that factor investing remains “the language of investment excellence” despite naysaying by the likes of Vanguard’s Jack Bogle and smart-beta pioneer Rob Arnott of Research Affiliates. This according to a recent article in Forbes. Black Rock, the article reports, has been “firing human stock pickers and betting that factor investing is the future of the struggling active-investment-management business.” It adds that Ang expects smart-beta ETFs to… Read More