Factor Investing: Unlocking The Real Drivers of Return
A Factor Revolution Decades in the Making
The concept of factors isn’t new. But their use is being revolutionized by technology.
Since the 1930s, factors have been researched and analyzed by academics—and have rewarded investors who tapped into their potential.
But until recently, gathering the vast amount of information required was an inexact science, and largely the provenance of institutional investors and active fund managers.
Today, advances in technology are forefront— creating the potential for deeper understanding of these return drivers.
Factor insights are now captured digitally and screened with blinding speed. The widespread availability of data allows investment managers to isolate, surface, combine and calibrate information with greater precision and sophistication, and offer them in new types of strategies