switzerlandde

Quality-factor

Forms part of an investment strategy that selects high-quality companies.

The criteria for this factor can be 'hard' (e.g., returns on shareholders' equity and free cashflows), but the application of this factor can also be based on 'softer' criteria such as quality of management, corporate governance and market position. As there is no precise fixed definition for Quality, academic circles are debating the use of this factor.

Valuation can also play a role in the selection of Quality stocks. Therefore, ongoing debate is questioning whether this factor differs from the Value factor. Researchers Assness and Frazzini* define the Quality factor as investing in the stocks of safe, profitable, expanding and well-managed companies.

Interest in the Quality factor increased in the aftermath of auditing scandals such as the Enron affair in 2001. Another reason for the increased interest in the Quality factor is the possibility of achieving greater diversification.

* Clifford S. Asness, Andrea Frazzini, and Lasse H. Pedersen: 'Quality Minus Junk', 2013

Quantitative Investing
Quantitative Investing

Wir sind seit über 25 Jahren führend im Bereich „Quant Investing”.

Mehr
„Aktienkursbewegungen werden hauptsächlich vom Verhalten bestimmt, nicht vom Risiko“
„Aktienkursbewegungen werden hauptsächlich vom Verhalten bestimmt, nicht vom Risiko“
Der Online-Transfermarkt beim Videospiel FIFA 19 Ultimate Team (FUT) und Machine Learning geben Aufschluss über einige Aspekte von Behavioural Finance.
01-07-2021 | Interview
Wegweiser zu Paris-aligned Investments
Wegweiser zu Paris-aligned Investments
Das Rennen in Richtung null CO2-Emissionen hat begonnen.
10-06-2021 | Einblicke
Podcast: Umgang mit Veränderungen und Herausforderungen in der Asset Management-Branche
Podcast: Umgang mit Veränderungen und Herausforderungen in der Asset Management-Branche
In der Asset Management-Branche wird es nie langweilig.
04-06-2021 | Podcast