Rob Arnott Wants to Take a Victory Lap on Factor Crowding Call
- Smart beta pioneer has issued warnings about the style before
- Value will outperform over next 1-5 year period, he says
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For years, Rob Arnott has been warning of distortions brewing in factor strategies. After this week’s momentum blowup, he’s feeling redeemed. And saying that the worst may not be over.
To the Research Affiliates co-founder, the rotation from growth to value in the stock market has a familiar ring. It smacks of quantitative strategies growing in popularity so when the trend breaks, it breaks big.