Are all value stocks and all momentum stocks equally attractive? In our research, we found that different types of value and momentum stocks exhibit very different performance characteristics. A value approach which incorporates some momentum and risk considerations tends to outperform a generic approach, but a value approach which intentionally goes against these factors significantly underperforms. Our analysis helps to better understand what differentiates a successful factor investing approach from an unsuccessful one. The return difference between good and bad strategies can be up to 5-7% per year. Read more about this research.
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- Evolution key to top funds’ growth
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- USS goes direct in private markets
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- Strathclyde cuts equity allocation