Ten commandments for alternative premia investing
What to watch out for when constructing alternative premia portfolios
Luc Dumontier is head of factor investing and senior portfolio manager at La Française Investment Solutions in Paris
In a previous article, the author addressed the conditions in which alternative premia solutions can generate consistent positive returns and those that can lead to big drawdowns. Here he sets out 10 commandments for investors looking to construct a robust premia portfolio with stable performance.
1. Go beyond the academicMost factor investing strategies – whether long-only (
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