Equity Smart Beta and Factor Investing for Practitioners

  • 8h 26m
  • Khalid Ghayur, Ronan Heaney, Stephen Platt
  • John Wiley & Sons (US)
  • 2019

A guide to the popular and fast growing investment opportunities of smart beta

Equity Smart Beta and Factor Investing for Practitioners offers a hands-on guide to the popular investment opportunities of smart beta, which is one of the fastest growing areas within the global equity asset class. This well-balanced book is written in accessible and understandable terms and contains an in-depth manual filled with analytical information and new ideas.

The authors—noted experts in the field—include a definition of smart beta investing and detail its history. They also explore the distinguishing characteristics of smart beta strategies, offer an overview of factor investing, and reveal the implementation of smart beta approaches. Comprehensive in scope, the book contains helpful examples of applications, real-life illustrative case studies, and contributions from leading and respected practitioners that explain how they approach smart beta investing. This important book:

  • Contains an in-depth exploration of smart beta investing
  • Includes the information written in clear and accessible language
  • Presents helpful case studies, illustrative examples, and contributions from leading and respected experts
  • Offers a must have resource coauthored by the Head of Goldman Sachs’ equity smart beta business

Written for investors who want to tap into the opportunities that smart beta offers, Equity Smart Beta and Factor Investing for Practitioners is the comprehensive resource for learning how to create more efficient overall equity portfolios.

About the Authors

KHALID (Kal) GHAYUR, CFA, FSIP, is Managing Director, Head of ActiveBeta Equity Strategies, Goldman Sachs Asset Management. He oversees his team's customized, factor-based equity portfolios. Prior to joining GSAM, Kal was the Managing Partner and Chief Investment Officer for Westpeak Global Advisors, a pioneer in the smart beta space.

RONAN G. HEANEY is Vice President, Head of ActiveBeta Equity Research, Goldman Sachs Asset Management. He leads investment research activities, including improving quantitative investment models and portfolio construction methodologies and identifying and testing new model components and implementation techniques.

STEPHEN C. PLATT, CFA, is Vice President, Head of ActiveBeta Equity Portfolio Management, Goldman Sachs Asset Management. He is responsible for portfolio management, including portfolio construction and risk management of global developed and emerging market equity portfolios and custom indexes.

In this Book

  • Introduction
  • Evolution and Composition of the Equity Smart Beta Space
  • An Overview of Equity Common Factors and Factor Investing
  • Explaining Smart Beta Factor Return Premia
  • Weighting Schemes
  • Factor Specifications
  • Active Risk and Return Decomposition of Smart Beta and Active Strategies
  • Performance Characteristics of Individual Smart Beta Factors
  • Performance Characteristics of Factor Diversification Strategies
  • The Low-Volatility Anomaly
  • Structuring Better Equity Portfolios—Combining Smart Beta with Smart Alpha
  • Incorporating ESG with Smart Beta
  • An Alternative to Hedge Fund Investing—A Risk-Based Approach
  • Implementing Smart Beta at CalPERS, a Conversation with Steve Carden
  • A Pension Fund’s Journey to Factor Investing—A Case Study
  • Using Smart Beta for Efficient Portfolio Management
  • Smart Beta from an Asset Owner’s Perspective
  • Smart Beta—The Space between Alpha and Beta
  • Smart Beta Investing for the Masses—The Case for a Retail Offering
  • Positioning Smart Beta with Retail Investors, a Conversation with
  • Addressing Potential Skepticism regarding Smart Beta
  • Conclusion
  • Bibliography
  • Additional Disclaimers