Factor funds ‘do right things for wrong reasons’ – Intech

Firm says conventional investing wisdom is missing out on alpha

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Intech, a $50 billion quant manager, says factor investors have got it wrong.

The firm has long trodden a different path to other systematic investors, building strategies based solely on the effects of diversification, even as the idea that a handful of stock characteristics – ‘factors’ – drive returns has become ubiquitous among quants. Now Intech is challenging that consensus head on.

The firm says popular factor-based strategies work, not because they target recognised factors such as valu

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