Scientific Beta

This issue examines the challenges of market concentration and offers evidence-based solutions through diversified and factor strategies. It also assesses machine learning, ESG data, single-factor design, portfolio completion, climate-focused indices, and the impact of controversial-weapons screens—providing practical guidance for building robust, future-ready equity portfolios.

This Scientific Beta supplement to IPE explores key challenges and opportunities facing equity investors in an environment of extreme US market concentration.

Drawing on long-term evidence, it shows why diversified strategies are well positioned to outperform mega-caps over the coming decade and outlines practical approaches to mitigating concentration risk through multi-factor solutions.

The supplement also examines how machine learning and ESG data can contribute to portfolio construction; highlighting both their genuine potential and their limitations.

Several articles detail the design of robust single-factor strategies, including value, risk-managed momentum, and 130/30 approaches, along with a practical portfolio-completion case study.

The publication concludes with insights into building a fact-based climate strategy and navigating the performance and policy implications of controversial-weapons exclusions.

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