Scientific Beta

Financial News: "Felix Goltz, director of research at ERI Scientific Beta, did not deny the strategy's potential. But he added that investors needed to understand the issues involved."

Financial News 14/04/2016

"(...) Market-neutral interests Willis Towers Watson because of the precise way it can balance out factors. A long position in value, for example, could be twinned with a short position in growth, or non-value, producing an enhanced growth factor bet, as well as a zero market exposure. Optimisers can be used to strip out other factors including, say, a dominant currency exposure. Tindall said: "It doesn't have to be an optimiser per se, but you would look to reduce the impact of exposures that don't add much value. For example, you could balance longs and shorts in each sector or country. Felix Goltz, director of research at ERI Scientific Beta, did not deny the strategy's potential. But he added that investors needed to understand the issues involved. (...)"