Investing factors that work over time typically do so for one of two reasons: they either produce an excess return by taking on additional risk or they benefit from the…
Tag: Factor Investing
Excess Returns, Ep. 23: The Challenges of Multi-Factor Investing
The basic theory of multi-factor investing is pretty simple. It has been widely proven that factors like value and momentum can outperform the market over long periods of time. But…
Rob Arnott Claims Victory on Factor Crowding
Research Affiliates Co-Founder Rob Arnott is feeling “redeemed” after the rotation earlier this month from growth to value outperformance, according to an article in Bloomberg that says, “it smacks of…
Six Common Misconceptions About Factor-Based Strategies
By Jack Forehand, CFA (@practicalquant) Factor strategies have grown exponentially in the past decade. Almost every major asset manager now offers their variation of things like value, momentum, quality, and…
Factor Investing is Falling Short
The attempts by pension funds and endowments to earn equity premiums by incorporating factor-based funds into their portfolios has fallen short, instead leaving them with uncompensated risks. This according to…
Validea’s Justin Carbonneau on the Acquirer’s Multiple Podcast
Last week Validea Partner Justin Carbonneau was interviewed by Tobias Carlisle on the Acquirer’s Multiple Podcast. Toby and Justin discuss Validea and our approach to investing, as well as a…
Is GARP Investing Still Golden?
An article in CFA Institute discusses the methodology and performance of growth-at-a-reasonable-price (GARP) investing, a style popularized by Fidelity manager Peter Lynch. “Most investors,” the article says, “are inclined toward…
Five Questions: Factor Investing with Jim O’Shaughnessy
By Jack Forehand (@practicalquant) Factor investing has grown dramatically in recent years. But it is far from new. As those of us who invest using factors seek to learn more…
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…
Investors Getting More Comfortable with Factor Investing
An article in WealthManagement reports that factor investing has gained acceptance and an increase in demand, as evidenced by an Invesco study that involved interviews with key decision makers of…