Scientific Beta

Financial Times: "Felix Goltz, research director at the EDHEC Risk Institute, a research institution that has developed smart beta indices, said it was “well documented, both empirically and theoretically” that smart-beta strategies deliver outperformance in the long term."

Financial Times 22/02/2016

"(...) Smart beta, one of the most popular investment strategies of the past 12 months, could go “horribly wrong” and leave investors nursing large-scale losses, according to one of the pioneers of the concept. (...) But Mr Arnott’s comments were met with resistance from other smart beta providers. Felix Goltz, research director at the EDHEC Risk Institute, a research institution that has developed smart beta indices, said it was “well documented, both empirically and theoretically” that smart-beta strategies deliver outperformance in the long term. Research Affiliates’ fundamental equity indexation strategy, which weights stocks based on their underlying value, has underperformed over recent years relative to a cap-weighted benchmark, said Mr Goltz. In contrast, many of the strategies that Research Affiliates called overpriced have outperformed, he added. (...)"