Behavioural psychology studies are doubting whether portfolio manager with their own skills, analysing market environments can outperform simple algorithms.
The Axioma Quant Forum in London was visited by 150 investment professionals from asset management companies, institutional investors and investment banks.
Raul Leote de Carvalho explains how smart beta strategies are on the way out, proposing a three-step approach to factor investing as the way forward.
Highlighting the importance of combining the four cardinal virtues of Plato in relation to the four main long-term factors of equity outperformance, rather than “timing” them.
Etienne Vincent, head of quantitative management at THEAM, explains the similarities between the four main recurring sources of outperformance in equity markets and the four cardinal virtues identified by Plato in his philosophical works
Portfolios of multiple Smart Beta indices can be replaced by more efficient robust portfolios with targeted factor exposures.