'Factor-based indices have been doing quite well lately'

Though our stock exposures at Samco Mutual Fund are high at the present juncture, the investment team uses momentum and trend-following algorithms to help us take advantage of market gains even when valuations appear high and to dynamically cut exposures when the tide turns. Some funds mandated to hedge may reduce their stock exposures, while others will shift to lower volatility and higher quality names to mitigate downside risks.

This article was originally published on November 05, 2024.