Investors are not being properly compensated for the risks they are taking, Stephen Potter, President of Northern Trust Asset Management said in a presentation delivered as the Morningstar Investment Conference got underway in Chicago Monday. The panel discussion focused on the importance of factor analysis as opposed to individual stock picking as contributor to returns performance, breaking down risk into three primary categories: investment, reputational and longevity (retirement) risk. Its been a tough five years for individual stock pickers, as factor analysis is categorized as the next level of the “smart beta” movement When investors consider risk they typically do…
Northern Trust Uses Factor Investing To Mitigate Risk
Mark Melin
Mark Melin is an alternative investment practitioner whose specialty is recognizing the impact of beta market environment on a technical trading strategy. A portfolio and industry consultant, wrote or edited three books including High Performance Managed Futures (Wiley 2010) and The Chicago Board of Trade’s Handbook of Futures and Options (McGraw-Hill 2008) and taught a course at Northwestern University's executive education program.