Factors Provide Distinct Advantages for Funds (Webinar Review)
In August of 2020, EDS hosted a webinar entitled “How Factors SuperCharge Idea Generation” with our partner MSCI Barra along with fundamental funds who are using factors to improve results. Read on for a brief summary.
Why should you even care about Factors?
For example, clients have simple, actionable scorecards, that provide instant perspective on market flows and themes, even amidst the most dislocated markets.
And with EDS & MSCI, you have the flexibility to go deeper, SuperCharging your idea generation & research process
Actionable intelligence on names in my portfolio, now?
Getting to Where You Want to Go
- EDS is particularly useful for teams that quickly want to roll up portfolio positions into category weights like Asset Selection (Alpha) and Factor contribution.
- And while the vast majority of risk tools I have historically worked with are backwards looking with Captain Obvious hindsight observations, EDS enables forward action- orientated decisions using MSCI data.
- For example, I can either target specific names I know represent the majority of my exposure to an undesired factor and model changes using trade simulation, OR I can ask the system to do it for me by setting a number of general parameters that I have specified, like max turnover, gross exposures, max position size change, and my ending volatility target.
This allows me to translate an observation into specific action, often in the context of other fundamental perspectives I may be integrating into my final position size decisions.
Please contact EDS at email@example.com for more information.