Prompted by a lackluster performance year, AQR Capital Management founder Cliff Asness wrote a 23-page essay defending his factor-based investing strategies according to a recent Bloomberg article that features an…
Tag: Factor Investing
Will Factor Investing Kill Hedge Funds?
Last month, the Financial Times ran a lengthy piece on factor investing that discusses to what degree it poses a threat to the hedge fund industry. The article recalls a controversial…
Secrets to High Returns: Has the Hunt for Factors Gone Too Far?
An article in the May issue of the Chicago Booth Review discusses the ongoing discovery of investable factors, which it says are “being discovered almost as quickly as they can…
The Future of Factor Investing
A recent article in Advisor Perspectives offers a number of insights regarding factor investing: Data mining, it argues, represents a “huge risk” in factor-based investing. “Many factors have proven to…
Common Mistakes in Factor Investing
By Jack Forehand (@practicalquant) — With the release of Michael Batnick’s new book “Big Mistakes: The Best Investors and Their Worst Investments” last week, the topic of mistakes in investing has…
Factor Investing Tips
For investors interested in factor-based strategies, a recent Barron’s article suggests that it can “take longer than most investors are willing to wait for signs of success.” The article cites…
Why Both Sides of the Active vs. Passive Debate Are Right
By Jack Forehand (@practicalquant) — It has become a common belief in the investing community that passive investing is superior to active management. And there is a large volume of data…
Value Investing Trends
A recent Morningstar article addresses the persistent lackluster performance of value stocks and whether it is a temporary situation or something more permanent. According to participants in this year’s Morningstar…
Factor Investing Can Keep Active Management Relevant
Despite its recent troubles, active management remains relevant, but its future “lies in low expenses that allow investors to enjoy a comfortable share of returns,” according to a recent article…
Ritholtz Says Stock-Picking is Still Alive if Not Kicking
Active fund management has been losing followers but isn’t going away entirely, writes Barry Ritholtz in a recent Bloomberg article. While stock-picking has seen a host of changes, he offers…