Scientific Beta

Money Management: "Investors, surveyed by EDHEC-Risk Institute and ERI Scientific Beta, have revealed that there is a contradiction between score-based factor design choices and the statistical beta-based risk analysis. The analysis of the extreme risk of factor portfolios additionally proved to be still ‘fairly basic’ and therefore it did not allow the extreme risks to be appreciated."

Money Management 23/01/2018

"(...) Investors, surveyed by EDHEC-Risk Institute and ERI Scientific Beta, have revealed that there is a contradiction between score-based factor design choices and the statistical beta-based risk analysis. The analysis of the extreme risk of factor portfolios additionally proved to be still ‘fairly basic’ and therefore it did not allow the extreme risks to be appreciated. Other key findings showed that multi-factor strategies tended to be implemented in a passive investment context, even though factor investing was based on risk management rather than active views of returns. According to the investment professionals who participated in the survey the score-based approach still dominated. (...)"