Scientific Beta

Funds Europe: "Eric Shirbini, product specialist at ERI Scientific Beta, thinks crowding is the wrong word for beta strategies, and that it applies more to alpha strategies: “Hedge fund strategies, where you have some sort of alpha secret source – when people know about it, that alpha is going to disappear. Crowding is used for alpha, not beta. How many people say that the US equities market is overcrowded?”

Funds Europe 12/10/2016

"(…) The problem with backing a smart beta factor – such as a low volatility fund, for example – is that the factor could become more expensive as it gains in popularity, eroding any advantages, say experts. (...) Eric Shirbini, product specialist at ERI Scientific Beta, thinks crowding is the wrong word for beta strategies, and that it applies more to alpha strategies: “Hedge fund strategies, where you have some sort of alpha secret source – when people know about it, that alpha is going to disappear. Crowding is used for alpha, not beta. How many people say that the US equities market is overcrowded?” (...)"