With rules-based factor strategies, investors can know from historical data that the strategy will have periods of over- and under-performance, making it easier to lean into underperformance with confidence; with discretionary active strategies, it's unclear whether underperformance signals an opportunity to double down or a red flag to exit.
causalpending
Speaker
Ben CarlsonEvidence Quote
“if you invest in an asset class or a rules-based strategy you know that it's going to come in and out of favor... when it does under perform I can lean into the pain... with an active strategy it's much harder to know is now the time to lean into the pain”
Created: 8/11/2026, 7:52:29 AM
My Notes
Loading notes...