Long/short factor strategies allow well-documented factor premia to be harvested and hedging out market risk effectively cancels a major source of risk. Market-neutral factor strategies can be useful additions to portfolios with strong market exposure due to low correlation with directional market risk. In this webcast, Eric Shirbini, PhD, Global Research and Investment Solutions Director with ERI Scientific Beta, will explore the following points:
• The challenges of a robust performance approach in the case of long/short multi-factor strategies
• Improving factor spreads without sacrificing performance stability: the challenge of allocating between factors adapted to long/short strategies
• How to ensure real market neutrality of long/short factor strategies
• The importance of investability of long/short strategies in factor investing