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Who Is On the Other Side?

The Curious Investor

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Are You Long a Factor?

You can think of being long a factor as bearing some kind of a risk that another investor wants to avoid. For example, the lobeta factor. If we lever and hold lobata stocks, we're take on a risk leverage. That's something another investor might not want to do, and they're gong to pay us for that. So i often think of who'se on the other side is almost like an insurance contract.

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