General Session 5: Alpha or Assets? Factor Alpha vs. Smart Beta

Tuesday, May 2, 2017 -
4:30pm to 5:30pm

Session type:

Passive investments and their smart beta cousins— with hundreds of billions of assets pouring into them—are a version of factor investing with a convenient benefit for their sponsors.  These strategies are built for scale for the companies that run them, not alpha for their investors. The true opportunity in factor investing is to build portfolios with more pronounced fundamental advantages (vs. simple tilts) that have the potential to deliver stronger returns.