Daily Archives: Jul 26, 2017 at 08:29 am EST

Testing Equity Factor Allocation Strategies With Random Portfolios

Designing and managing asset allocation strategies based on factors is promoted in some corners as a better way to build portfolios. Not surprisingly, there’s no shortage of studies that support this view. But the jury’s still out on whether it’s prudent to throw out the standard asset-class buckets. Factor-based investing can play a productive role in enhancing a conventionally designed asset allocation, but it’s debatable if a pure factor-only strategy is a true solution.
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