Scientific Beta

Risk.net: "The Nice, France-based EDHEC-Risk Institute, for instance, has developed a methodology combining factor tilts such as value, momentum and low risk with smart weighting to avoid concentration risk."

Risk.net 22/05/2014

"(...) The Nice, France-based EDHEC-Risk Institute, for instance, has developed a methodology combining factor tilts such as value, momentum and low risk with smart weighting to avoid concentration risk. The institute has had some success selling its indexes into segregated funds and dedicated mandates, but has yet to break into the mainstream ETF space. "I think it's essentially a question of the maturity of the market," says EDHEC's head of applied research, Felix Goltz. "What we have seen in the US is that institutional investors adopt these strategies through dedicated mandates and they are then rolled out in ETFs, and I expect we will see the same development in Europe. (...)"