Tag Archives: Factor Investing

Black-Litterman Model

In this article, Youssef LOURAOUI (Bayes Business School, MSc. Energy, Trade & Finance, 2021-2022) presents the Black-Litterman model, used to determine optimal asset allocation in a portfolio. The Black-Litterman model takes the Markowitz model one step further: it incorporates an … Continue reading

Posted in Contributors, Financial techniques | Tagged , , , , | Leave a comment

Smart Beta industry main actors

In this article, Youssef LOURAOUI (ESSEC Business School, Global Bachelor of Business Administration, 2017-2021) presents the main actors of the smart beta industry, which is estimated to represent a cumulative market value of $1.9 trillion as of 2017 and is … Continue reading

Posted in Contributors, Financial techniques | Tagged , , , | Leave a comment

MSCI Factor Indexes

In this article, Youssef LOURAOUI (ESSEC Business School, Global Bachelor of Business Administration, 2017-2021) presents the MSCI Factor Indexes. MSCI is one of the most prominent actors in the indexing business, with approximately 236 billion dollars in assets benchmarked to … Continue reading

Posted in Contributors, Financial techniques | Tagged , , , | Leave a comment

Smart beta 2.0

In this article, Youssef LOURAOUI (ESSEC Business School, Global Bachelor of Business Administration, 2017-2021) presents the concept of Smart beta 2.0, an enhancement of the first generation of smart beta strategies. The structure of this post is as follows: we … Continue reading

Posted in Contributors, Financial techniques | Tagged , , , | Leave a comment

Smart Beta 1.0

In this article, Youssef LOURAOUI (ESSEC Business School, Global Bachelor of Business Administration, 2017-2021) presents the concept of the smart beta 1.0, the first generation of alternative indexing investment strategies that created a new approach in the asset management industry. … Continue reading

Posted in Contributors, Financial techniques | Tagged , , , , | Leave a comment

Alternative to market-capitalization weighting strategies

In this article, Youssef LOURAOUI (ESSEC Business School, Global Bachelor of Business Administration, 2017-2021) presents the different alternatives developed to the market-capitalization weighting strategy (buy-and-hold strategy). The structure of this post is as follows: we begin by introducing alternatives to … Continue reading

Posted in Financial news, Financial techniques | Tagged , , , | Leave a comment

Markowitz Modern Portfolio Theory

In this article, Youssef LOURAOUI (ESSEC Business School, Global Bachelor of Business Administration, 2017-2021) presents Markowitz’s Modern Portfolio Theory, a pioneering framework for understanding the impact of the number of stocks in a portfolio and their covariance relationships on portfolio … Continue reading

Posted in Financial news, Financial techniques | Tagged , , , , | Leave a comment

Smart Beta strategies: between active and passive allocation

In this article, Youssef LOURAOUI (ESSEC Business School, Global Bachelor of Business Administration, 2017-2021) discusses the topic of smart beta strategies and especially the debate about its position as an active or passive allocation. Smart beta strategies appear to be … Continue reading

Posted in Contributors, Financial techniques | Tagged , , , | Leave a comment

Factor Investing

Factor Investing In this article, Youssef LOURAOUI (ESSEC Business School, Global Bachelor of Business Administration, 2017-2021) presents factor investing, which is an investment approach that focuses on distinct performance drivers across asset classes. This article is structured as follows: we … Continue reading

Posted in Contributors, Financial techniques | Tagged , , | 2 Comments

Origin of factor investing

Origin of factor investing In this article, Youssef LOURAOUI (ESSEC Business School, Global Bachelor of Business Administration, 2017-2021) presents the origin of factor investing. A factor is defined as a persistent driver that helps explain assets’ long-term risk and return … Continue reading

Posted in Contributors, Financial techniques | Tagged , , , , | 1 Comment