Lumen’s portfolio construction and asset allocation process starts with helping investors to clearly define their investment objectives, which can be mapped to a Predefined (Model) Universe, built up by factors that align with the investment strategies and investor’s goal.
What’s Next in Factor-Based Investing – Lumen’s Methodology
Lumen discusses factor investing, an investment approach where stocks are selected based on quantifiable factors that drive the differences in risk or rate of return of stocks. The article describes the history of factor investing and provides insights into the use of various factors in portfolio construction and how Lumen quantifies these factors, especially the unique Economic Value Added (EVA) concept as metrics of value. We also shared some observations of the factors selected.
Our View towards China (A) Market – Intrinsic Value vs. Intrinsic Risk
Have you missed the strong rally in the Chinese market since Fall of 2022 and wonder if you should get it?
See our view via this Tableau viz.
We are cautious though there are specific sectors like the financials that have value.
Contact us for more information.
Regional Markets and US Sectors Outlook Q1 2022 – Value vs. Risk
Please check out the Intrinsic Value column for the ranking of value and the Intrinsic Risk column for the ranking of risk – based on the Residual Income Model.
Rallies, Bubbles, and Value
Despite a pandemic, economic misery, and a dangerously contested election the likes of which the United States has never experienced, the equity market continues its upward march and breaking new records in the process. Indeed, many pundits point out to the enormous rally of the mega caps as evidence of a bubble. We disagree, and if anything, we believe the market has behaved very rationally.