As factor and multi-factor investing become more commonly understood investment styles, different strategies can help mitigate specific risks in choppier markets. “Nobody wants to hear about risk until it’s too late,” said Carlos Phillips, vice-president and director at TD Asset Management Inc., at an event hosted by the firm in Toronto on Tuesday. A significant […]
While factor investing can be a powerful tool, it may not be living up to its promise because of three common blunders, according to a forthcoming paper in the Journal of Portfolio Management. “Investors are typically led to develop their factor return expectations with little more than an extrapolation of the factor’s past paper-portfolio returns,” […]
With factor investing reaching high levels of popularity, a new paper by Scientific Beta is cautioning that a proliferation of new factors that aren’t academically validated could lead to unintended exposures and misunderstandings about risk exposures. “Investors can choose to rely on standard factors that have survived the scrutiny of countless empirical studies and have […]
Although factor investing and smart beta have gained in popularity, the emergence of alternative risk premia points to a critical focus for plan sponsors today: risk diversification. This is happening at a time when plans are shifting increasingly away from bonds and equities and into alternative investments. “Alternative risk premia provide a different route to […]
Thinking outside of the style box in volatile times.
Earnings quality and the value premium
Factor investing can boost your hedge fund allocation.
Coverage of the 2014 Risk Management Conference.