Bottom-up gets two thumbs down
A pair of researchers cite studies to argue that the ‘bottom-up’ method of constructing multi-factor portfolios reduces transparency and adds complexity, with no visible benefit.
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Be clear on factor strategies’ benefits
Smart beta, factor indices and other products promise a middle ground between traditional passive and active. But they vary greatly, and investors need to take a hard look before adopting them.
Factors aid manager selection
Investors, including the $194 billion State Board of Administration of Florida (SBA), are using factor analysis to decompose returns, select active managers and negotiate fees.
LD innovates on equities, fees
Danish pension fund Lønmodtagernes Dyrtidsfond has embraced innovation, introducing four buckets for a more dynamic equities portfolio and co-investing with peers to get top value for fees.
Real factors, and how to use them
Factor investing has become a topic du jour, but according to four experts, there are only a handful of factors that are persistent and robust. If used strategically, these can be useful.
Investors from the moon: Fama
A highlight of the Fiduciary Investors Symposium at Chicago Booth School of Business was an intimate Q&A session with the “Father of Modern Finance” and Nobel Laureate, Eugene F. Fama.
Opinion