Factor Investing in Action: Outperforming the SP500

Written By Alejandro Ramírez Rojas

Written by Natally Zanguna and Alejandro Ramirez-Rojas

Introduction

Factor investing is an investment strategy based on identifying and exploiting specific factors that can influence the performance of financial assets over the long, medium, and short term. These factors are characteristics or attributes that have been shown to have a relationship with asset performance. Some of the most common factors used in factor investing include:

  • Long-Term Factors.

  • Medium and Short-Term Factors:.

  • Section 1: Stock Selection/Filtering.

  • Section 2: Backtesting Results

  • Section 3: Risk Factors

  • Section 4: Conclusions

Alejandro Ramírez Rojas