The Case Against Factor Investing
About this Episode
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. Bob Huebscher dives into the case for and against factors in this interview with long-term investment adviser, Rick Ferri.
Show Resources
Rick’s firm, Ferri Investment Solutions: rickferri.com/
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Пікірлер: 8
22:22 why then, Rick, have valuation spreads between scv and lcb WIDENED???
27:00 impressive how Little Rick knows about how bad non DFA/ Avantis value funds are
At 16:00, Rick commits a logical fallacy called sunk cost fallacy
Great talk
@Bobventk
16 күн бұрын
It’s actually awful. Rick is a quack
22:50 “when you look at the paper discovering small cap premium in 1980, maybe 1979, it hasn’t happened since” 1. It was 1981- Rolf Banz. 2. YES IT HAS. Both in the US and internationally, the size premium has been very robust since 1980. Internationally, small cap performance has more than doubled MCW. In the us, small cap has beaten S&P 500 by over 60%. Repeating a lie doesn’t make something the truth. BTW his point about value disappearing post discovery (he also gets that date wrong) is also false. Globally, value HAS had a realized premium (a pretty big one too) since discovery (whether you use the real date or the date he gives)
Rick says many false things