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 the
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