Single-Factor Portfolio Construction

The tsunami of data in all its new forms creates opportunities for investors to gain an edge, but it’s all too easy to drown in it. How can new technology help investors stay afloat?

George Bonne, executive director on the equity core research team leveraged advancements in artificial intelligence and other technologies to identify and quantify “factors” related to the effects of COVID-19. We explored what he found and the implications for further research.

As investors continue coping with the consequences of COVID-19, Andy Sparks provides his perspective on the power of the right words from the right sources (aka, the Fed) and other insights from his team’s research.

We take a look at the latest research around four key elements of single-factor portfolio construction: investment universe selection, factor definition, portfolio breadth and security weighting.

Advances in artificial intelligence, machine learning and even user interfaces have radically changed the way investors collect, analyze and interact with data, and how they manage portfolios. In fact, every aspect of the investment process has been affected — and COVID-19 has only increased the pace of change.

Brett Winton, head of reserach at ARK Invest, explains how advancements in genomic technologies combined with artificial intelligence have proven invaluable in the fight against COVID-19 — and the profound implications for human health and investors far beyond the current crisis.

Did equity and fixed-income factors perform as expected during the first full quarter of COVID-19’s global spread? Hitendra Varsani, executive director, core equity research, analyzes the results for Q2, and what MSCI’s models showed as the third quarter kicked off.

From cashless transactions to sophisticated tracking, technology has played a major role as China battles the effects of COVID-19. Xiaoshu Wang from the ESG Research team in Beijing discusses investor reaction and efforts to boost the economy in the wake of a second wave.

We get the reasons behind the results of MSCI’s annual review — on Argentina, Turkey, Iceland and other markets — from global head of index solutions and chairman of the MSCI equity index committee, Sebastien Lieblich.

What have we learned from the COVID-19 market crisis? Dimitris Melas, global head of equity research returns to the podcast with his take.