We discuss how the Occam's razor principle can be applied to investment decisions, namely around asset allocation and manager evaluation.

We use an illustrative example to demonstrate that the “alpha” of a manager may be lower than initially expected.

In investing, the main drivers of risk in institutional portfolios are typically the macro factor risk exposures. While selecting individual securities may add value on the margin, asset allocation generally ...

This post explores how a factor-based approach can help investors uncover overlapping risks in portfolios and improve diversification.

Venn uses the Two Sigma Factor Lens to analyze how the SG Multi Alternative Risk Premia Index’s factor exposures and residual may have contributed to its poor performance in 2018.

We demonstrate how a two-step approach to factor analysis can enhance the interpretability and accuracy of factor analysis.

We demonstrate the Two Sigma Factor Lens’s functionality by using it to examine four different types of public funds.