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.

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