Factor investors wary about rush into value stocks

Buy side warned to stay diversified as quality and low-vol falls from favour


Factor investors are stressing caution amid one of the biggest shifts in factor performance in decades, from quality to value. June to November saw the fourth-biggest reversal in relative performance since the 1980s between a long/short quality and long/short value strategy, according to research from Societe Generale. But quant analysts and several factor investors say buy-siders should focus on diversifying, rather than slavishly following a rush into value. "You always need something in th