The Importance of Factor Investing

factor investing is not so much an investment strategy as a portfolio design tool. The real gripe that we have with factor investing and specifically those folks who are out there touting it so strongly is how granular you get with the factors. Just because something is correlated, just because something can move into it doesn't mean that there's causation associated with that. It's probably just one component of a much bigger thing that you're doing with your investments, with asset allocation.