Why Quant Funds Are Giving Factor Funds a Fright

The video discusses the challenges faced by factor investing, particularly in equity quant funds, which saw significant outflows. It highlights the underperformance of popular factors like momentum and value, and the difficulties in achieving diversification. The impact of changing market regimes on momentum strategies is examined, along with the debate on the long-term viability of factor investing. Concerns about exaggerated expected returns and crowded factors are also addressed.

What are some concerns regarding the long-term viability of factor investing?

Evaluate responses using AI:

OFF

What issues are raised about the expected returns in factor investing?

Evaluate responses using AI:

OFF