Five factor investing mistakes - and how to navigate them
It’s been a tough period for factor investing. Heralded as the answer to cheap portfolio construction, efficient portfolio management and a simple way to remove unintended factor exposure, factor portfolios have not been performing the way everyone expected.
In this paper, available as a PDF at the foot of the page, we highlight some of the common mistakes to avoid based on our own experience, and how to manage them:
- Mistake #1: Factors no longer work
- Mistake #2: Using too many factors
- Mistake #3: Being too cute when you combine factors
- Mistake #4: "The back-test told me to do it"
- Mistake #5: A factor completion portfolio might compete rather than complete
Find out more in our full paper below.
- UK Real Estate market commentary - Q1 2020
- Continental European real estate market commentary: Q1 2020
- Global Market Perspective - Q2 2020
- Coronavirus and the world economy: recent research from the economics team
- What are the credit opportunities in a low-yield environment?
- Economic and Strategy Viewpoint - February 2020