Rob Arnott on Quant Investing: Opportunities and Pitfalls

In a podcast interview last month with the Investment Innovation Institute, Research Affiliate’s Rob Arnott discussed a range of issues related to factor investing, quant strategies and research with host Daniel Grioli. Here are some highlights: “There are no bargains in the absence of fear, and fear is usually rooted in a narrative of things that could go wrong,” says Arnott, adding that opportunities present themselves in stocks that are out-of-favor, unloved and have inflicted… Read More

The Risk of Investing in “Smart Beta” Funds

Writing in the Wall Street Journal, Jason Zweig cautions readers against blindly investing in popular “smart beta” funds. He notes that a recent Research Affiliates study suggests “their low risk in the past may lead to higher risk in the future.” These “smart beta” funds are “backed by research purporting to show [they] ha[ve] beaten the market.” Assets invested in such funds has tripled over five years, to a total of $565 billion in 2015. … Read More