Research Affiliates – (Webinar Replay) How Can “Smart Beta” Go Horribly Wrong?
In evaluating any investment strategy, valuations matter. Rising valuations inflate past performance, reduce potential future performance, and amplify the risk of mean reversion down to historical levels. Looking under the hood, some smart beta strategies appear to have added value solely by getting more expensive.
Many value investors have given up on their strategy over the last 15 years amid concerns that value investing no longer worked. However, some made small adjustments to their strategy but remained value investors to the core. Now all of the value investors who held fast to their investment philosophy are being rewarded as value Read More