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Smart beta = Dumb beta + Smart Marketing?

Smart beta = Dumb beta + Smart Marketing?

20-04-2016 | From the field
  • David Blitz
    David
    Blitz
    Head of Quant Research

In his witty style, James Montier takes a critical look at recently popular investment concepts such as smart beta, risk parity and real assets*. We actually agree a lot with what he is saying. For instance, we agree that smart beta is merely providing exposure to classic factor premiums. That is what we have been saying all along.

Moreover, we also agree that it is important to never ignore the price you actually pay for a security. That is why we have included valuation factors in our low-volatility and momentum factor products from the outset. We recommend Montier’s piece as a sobering and entertaining read!

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From the field
From the field

Our researchers publish many whitepapers based on their own empirical studies; they also follow quantitative research done by others.

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