Style rotations, where investors switch one type of investment style for another, are nothing new. At some point during most investment cycles different styles – such as growth, quality and value – will outperform at different points as investors rotate in and out depending on their outlook.
The abundance of theoretical and empirical research on factor investing in the equity universe contrasts strongly with the relative scarcity of research on the existence and exploitability of risk premia in bond markets.
To achieve long-term returns comparable to those of investment-grade credit but with a consistently lower level of risk, CPR AM has chosen to combine the DTS risk measure with a rigorous specific risk control and structural sources of return to enhance performance...
Solactive announces the launch of the Adaptive Wealth Strategies U.S. Factor Index which dynamically allocates across three sub-indices with exposure to U.S. equities in the large and mid-cap segment and exhibits characteristics of one of three primary factors...
Academic studies present ample evidence in support of the existence of four
factor premiums in stock markets: Low Risk, Value, Momentum, and Quality.
Factor investing puts these concepts into practice by enabling investors to
allocate their capital explicitly to these premiums in order to achieve higher
returns and better risk management.