Our focused factor philosophy
Wes Gray, CEO of Alpha Architect, discusses what makes factor investing simple, but not easy! This detailed video introduces our uniquely concentrated factor investing approach and other topics discussed in our research newsletter.
1:15 – What is Factor Investing?
7:05 – Do Factors Work?
8:19 – Why Factors Do Not Work
11:20 Deep Dive into Strategy Return Drivers
30:29 Factor Portfolio Consideration
31:28 Potential Trade-off between concentration and tracking error
38:07 Managing Factor Investor Behavior
1. What are factors?
Factors are characteristics of stocks. Some stocks have the characteristic of being large, some are small, some pay high dividends, and some pay no dividends.
At Alpha Architect, we target stocks exhibiting the Value factor (stocks that are cheaper than the market relative to their fundamentals) and Momentum factor (stocks that have consistently increased in price over time).
2. How is our factor approach unique?
Alpha Architect seeks to provide consistent exposure to the strongest Momentum stocks and cheapest, highest quality Value stocks across the developed market.
We believe our concentrated approach produces the best way for an advisor to control their client’s exposure to Value and Momentum stocks, based on each clients’ goals.
3. Why should advisors care?
Investment solutions don’t have to be complex to be robust. Alpha Architect is committed to producing the highest quality products and services without adding additional complexity for our advisor partners.
We stand shoulder-to-shoulder with our partners to provide education, resources, and transparency to ensure your clients are getting the best solutions to meet their needs.
Our focused factor philosophy
Wes Gray, CEO of Alpha Architect, discusses what makes factor investing simple, but not easy! This detailed video introduces our uniquely concentrated factor investing approach and other topics discussed in our research newsletter.
1:15 – What is Factor Investing?
7:05 – Do Factors Work?
8:19 – Why Factors Do Not Work
11:20 Deep Dive into Strategy Return Drivers
30:29 Factor Portfolio Consideration
31:28 Potential Trade-off between concentration and tracking error
38:07 Managing Factor Investor Behavior
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- Practical advisor content with a factor focus.
- Topics include the latest factor research, capital markets, and economic insights.
- Links to our portfolio team’s recent appearances on podcasts and other media.
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