PT  - JOURNAL ARTICLE
AU  - Paula Cocoma
AU  - Megan Czasonis
AU  - Mark Kritzman
AU  - David Turkington
TI  - Practical Applications of Facts about Factors
AID  - 10.3905/pa.5.3.253
DP  - 2018 Jan 31
TA  - Practical Applications
PG  - 1--4
VI  - 5
IP  - 3
4099  - https://pm-research.com/content/5/3/1.11.short
4100  - https://pm-research.com/content/5/3/1.11.full
AB  - In Facts about Factors, published in the 2017 Special Issue of The Journal of Portfolio Management, Paula Cocoma, Megan Czasonis, Mark Kritzman, and David Turkington compare portfolio construction methods that are based on allocation to factors rather than using traditional building blocks such as asset class or industry sectors. “Because factors have an additional source of instability—mapping errors—factors are less stable than the traditional ways of grouping assets,” notes Kritzman.“Factors are obviously a very hot topic right now,” Turkington says. “But there is a lot of confusion about what factor investing means and the ways in which it adds value. We wanted to bring some clear analysis and new analytic perspectives to factors.”