Many Happy Returns cover image

Many Happy Returns

Building a Multi-Factor Stock Portfolio, with Ed Croft

May 29, 2024
Ed Croft, co-founder of Stockopedia, discusses multi-factor investing and quantitative stock selection. Topics include the benefits of factor investing, using data-driven strategies over emotional stock picks, optimizing stock ranks for portfolio performance, and combining core index funds with individual stock portfolios for improved investment outcomes.
49:45

Episode guests

Podcast summary created with Snipd AI

Quick takeaways

  • Factor investing focuses on value, quality, and momentum for consistent returns over time.
  • Ed Croft transitioned from scientist to investor, emphasizing academic research and user guidance at Stockipedia.

Deep dives

The Power of Factor Investing in Stock Selection

Factor investing involves quantifiable characteristics like value, quality, and momentum that have shown consistent performance in driving returns over time. By designing portfolios with specific factors, such as favoring cheaper shares with potential to outperform expensive ones in the long term, investors can aim to capture market rewards.

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