Skip to content

Subscribe to Investment Strategy Commentary

Factor Investing

Australian Equities: Factoring in Alpha

Research shows that certain types of stocks - quality, momentum and value among others - historically have outperformed the broad global equity market over the long-term. But does the same apply to a concentrated market like Australia?


Higher interest rates are driving value stocks up, but not all in the same way. Head of Quantitative Strategies Michael Hunstad, Ph.D., explains what the diverging performance of value stocks means for investors.

While the ongoing economic recovery is durable and we advocate an overweight to equity, the growing body of high-multiple companies of lower financial quality and high-leverage may prove a significant performance headwind and add materially to a portfolio’s tail risk. How can investors avoid this danger? Our Head of Quantitative Strategies Michael Hunstad, Ph.D., explores the issue.