The Case Against Factor Investing

Investing in “smart beta” was the rage in the early 2000s, as small-cap-value stocks vaulted over large-cap-growth stocks. But like all supercharged investment strategies, it didn’t last. Factors premiums have not materialized since the financial crisis. For most of the last decade, value has underperformed growth, driving the underperformance of the largest category of smart-beta strategies.  We’ll go over the case for and against factors in this interview with long-term investment adviser, Rick Ferri.

Here are a few links to resources:

• Rick’s PowerPoint presentation, “The Case Against Factor Investing”
• Rick's firm, Ferri Investment Solutions