Achieve Greater Diversification with Factor Investing with John Lunt | Tao of Chao 09

Philip Chao welcomes investment strategy expert John Lunt, President of Capital Management, Inc. to the Tao of Chao podcast to explore factor investing.

Learn the benefits of factor investing and how using macroeconomic and statistical factors to create an investment plan can result in greater diversification and a higher return on your investments, while mitigating risk. Don't miss this insightful conversation — listen now! 

👓 Learn more about our HOST

Philip Chao
Website: https://philipchao.us
Follow Philip on LinkedIn

DISCLOSURE: Views expressed in the Tao of Chao podcasts are individual opinions and they do not represent the employers of each guest or the firm with which each guest is associated. Our podcasts are for educational and informational purposes only and should not be deemed or viewed as investment advice or recommendations. Please consult your personal financial advisor, investment expert, or investment fiduciary before taking any actions about your plan and investments.

Chapters

• 0:00 Show Open
• 0:36 Introduce John Lunt of Lunt Capital Management, Inc.
• 1:34 The popularization of Factor Investing
• 3:24 Defining factors
• 5:47 Is an index factor investing?
• 7:17 Factor Investing: history and the three factor model
• 10:52 Finding the boundaries of factors
• 13:04 Defining key factors
• 15:17 Investor risk vs reward in the market
• 16:59 Testing factors - looking back to go forward - factor crowding
• 20:06 Factor crowding influencing return
• 21:49 Holistic approach to factor investing
• 23:31 Is factor investing value investing?
• 25:31 How many factors are too many in a portfolio?
• 28:48 Factor definitions: Value
• 30:32 Factor definitions: Quality
• 33:06 ESG in relation to factor investing
• 36:15 How should portfolio managers approach factors?
• 41:13 Summing up the utility of factor investing
• 44:25 Wrapping Up