Blackrock asset research director Andrew Ang shares his economic insights into fundamental factors for global asset management.

Apple Boston

2019-07-29 11:33:00 Mon ET

Blackrock asset research director Andrew Ang shares his economic insights into fundamental factors for global asset management. As Ang indicates in an interview with Ritholtz Wealth Management, fundamental factor investors seek to manage macroeconomic risk to enhance their average returns. Ang focuses on 5 primary factors: size, value, momentum, low volatility, and high quality of profit margins. In addition, Ang oversees a broad basket of assets such as stocks, bonds, currencies, and commodities.

The consistent application of both big data and technology helps scale total assets under management with lower transaction costs. At BlackRock, Ang decomposes his favorite fundamental factors across macro and style factors. The 3 major macro factors are *economic growth, inflation, and the real interest rate*, in accordance with the baseline Taylor interest rate that depicts a highly non-linear Phillips curve. Ang empirically finds that these 3 macroeconomic factors account for 85% of stock market returns. Stock portfolio analysis helps achieve higher average returns (after risk and fee adjustments) when the active fund manager focuses on size, value, momentum, low volatility, and corporate profitability. Moreover, value occasionally becomes more cost-effective relative to its own history, and key momentum returns often cluster together in specific time periods. This factor investment methodology accords with our proprietary alpha investment model that relies on 6 fundamental factors (size, value, momentum, asset growth, operating profitability, and market risk exposure).

 


If any of our AYA Analytica financial health memos (FHM), blog posts, ebooks, newsletters, and notifications etc, or any other form of online content curation, involves potential copyright concerns, please feel free to contact us at service@ayafintech.network so that we can remove relevant content in response to any such request within a reasonable time frame.

Blog+More

AYA finbuzz podcast offers fresh insights into the latest stock market issues and economic trends for better and wiser investment decisions.

Amy Hamilton

2019-06-30 12:37:00 Sunday ET

AYA finbuzz podcast offers fresh insights into the latest stock market issues and economic trends for better and wiser investment decisions.

AYA Analytica finbuzz podcast channel on YouTube June 2019 In this podcast, we discuss several topical issues as of June 2019: (1) Federal Reserve h

+See More

Top tech firms such as Google, Intel, and Qualcomm suspend Android services to HuaWei as the Trump administration blacklists the Chinese company.

Jonah Whanau

2019-06-01 10:33:00 Saturday ET

Top tech firms such as Google, Intel, and Qualcomm suspend Android services to HuaWei as the Trump administration blacklists the Chinese company.

Top tech firms such as Google, Intel, and Qualcomm suspend Android services to HuaWei as the Trump administration blacklists the Chinese company. HuaWei can

+See More

President Trump introduces $50 billion tariffs on Chinese products and new limits on Chinese high-tech investments in America.

Apple Boston

2018-05-25 07:30:00 Friday ET

President Trump introduces $50 billion tariffs on Chinese products and new limits on Chinese high-tech investments in America.

President Trump introduces $50 billion tariffs on Chinese products and new limits on Chinese high-tech investments in America. This new round of tariffs

+See More

President Trump blames the Federal Reserve for its *crazy tight* interest rate hike.

Becky Berkman

2018-10-13 10:44:00 Saturday ET

President Trump blames the Federal Reserve for its *crazy tight* interest rate hike.

Dow Jones tumbles 3% or 831 points while NASDAQ tanks 4%, and this negative investor sentiment rips through most European and Asian stock markets in early-O

+See More

Goldman Sachs follows the timeless business principles and best practices in financial market design and investment management.

Chanel Holden

2020-02-26 09:30:00 Wednesday ET

Goldman Sachs follows the timeless business principles and best practices in financial market design and investment management.

Goldman Sachs follows the timeless business principles and best practices in financial market design and investment management. William Cohan (2011) M

+See More

The Trump team blocks Broadcom's bid for Qualcomm due to national security concerns and 5G telecom network issues.

James Campbell

2018-03-06 11:35:00 Tuesday ET

The Trump team blocks Broadcom's bid for Qualcomm due to national security concerns and 5G telecom network issues.

The Trump team blocks Broadcom's bid for Qualcomm due to national economic security concerns and 5G telecom network issues. Broadcom makes microchips fo

+See More