NEW YORK, May 23, 2016 /PRNewswire/ -- Gerstein Fisher has just launched a new investor video: The Science of Multi-Factor® Investing. The brief video traces the history of academic theories on the relationship between risk and return in investing in explaining how today's factor-based approaches came to be.
The video credits the advent of personal computing in the 1970s for allowing investment practitioners and academic theorists to analyze larger sample sizes of data than had been possible before. In the ensuing years, a number of noted academic studies revealed links between certain stock characteristics (or "factors") and excess returns. Examples of factors include size (small cap), value, and momentum.
Drawing an analogy between stock factors and DNA, the video offers a clear, visually compelling explanation of how multi-factor portfolios are constructed.
By recognizing the limitations of previous models and theories, and partnering with leading academic researchers around the world, Gerstein Fisher remains on the forefront of factor-based investing. "Today's investors have more choices than just active or passive," said Gerstein Fisher CIO Gregg S. Fisher. "Multi-factor strategies offer a third way—and we believe a better way—to achieve strong long-term risk-adjusted returns. We created this video to help better educate investors about that choice."
About Gerstein Fisher
Gerstein Fisher is an investment management firm headquartered in New York City. Founded in 1993, the firm manages assets using a quantitative, Multi-Factor® approach grounded in economic theory and time-tested academic research. Drawing on a deep understanding of both market dynamics and investor behavior, Gerstein Fisher has more than two decades of experience creating innovative solutions for investors. For more information, please visit www.GersteinFisher.com.
This is a publication of Gerstein Fisher & Associates, Inc. an SEC registered investment adviser. A copy of our written disclosure statement discussing the scope of our services, fees and conflicts is available upon request or at www.GersteinFisher.com. Please remember that different types of investments involve varying degrees of risk, and it should not be assumed that future performance of any specific investment or investment strategy (including the investments and/or investment strategies recommended and/or undertaken by Gerstein Fisher) or any investment-related or financial planning consulting services will be profitable, or prove successful. Past performance is not an assurance of future results. This is not to be construed as an offer to buy or sell any financial instruments.
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SOURCE Gerstein Fisher