Scientific Beta

i3 Insights: "Scientific Beta's Warwick Schneller attributes the recent drawdowns to market structure, not a breakdown in systematic investing."

i3 Insights 02/02/2026

"(...) Multi-factor portfolios can look diversified on paper while carrying a common engine: the same winners. Increasingly it seems investors are conflating growth with momentum.

Scientific Beta's Warwick Schneller attributes the recent drawdowns to market structure, not a breakdown in systematic investing.

He points to "extreme equity market concentration" and argues the period has been "selective" and "implementation-driven" – strategies that deviated further from market-cap benchmarks wore more of the headwind, while market-aligned, risk-managed approaches were more resilient.(...)"