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>>>New research paper: "Reasoning in doubt: the singularity of low volatility investing"

19 January 2017

New research paper: "Reasoning in doubt: the singularity of low volatility investing"

Seeyond is pleased to present its latest research publication. Composed by the Quantitative Research team, the document highlights the theme of low volatility investing.

Equity investors have been cognizant for decades of a number of risk factors that
help explain the behavior of equity markets. We believe the recent past has drawn
out into the light an additional factor that investors should look to integrate into
their analysis, which is low volatility. The low-volatility factor runs counter to traditional portfolio theory which stipulates that an investor should be rewarded in
proportion with the risk taken. In this paper, we attempt to elucidate equity risk
mispricing, continue to comment on whether this is a structural phenomenon,
and conclude by explaining how investors may best position themselves in the
context of a diversified portfolio.

 

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