FACTOR-BASED INVESTING

Style Advantage

Capital at risk. All financial investments involve an element of risk. Therefore, the value of the investment and the income from it will vary and the initial investment amount cannot be guaranteed.

 


 

Why BlackRock for Style Advantage?

BlackRock’s Style Advantage strategy is designed to provide attractive, diversified risk-adjusted returns with low correlation to equity and bond markets.

Diversifies differently
Diversifies differently
The strategy invests in a diverse set of long/short portfolios, each of which represent exposure to a specific style factor that has outperformed over long time periods.
Emphasis on managing downside risk
Emphasis on managing downside risk
Explicitly constructed to be market neutral, resilient to equity market sell-offs and interest rates moves.
Extensive track record
Extensive track record
Directly targets well-established and intuitive sources of return to achieve a diversified portfolio sourced from a broad set of deep and liquid markets.
Cost effective
Cost effective
Dedicated trading research team that forecasts explicit and implicit transaction costs across every asset class.

Learn more about Style Advantage at BlackRock

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Investment Philosophy

Style factor captures well-known and persistent drivers of return resulting from rewarded risks, structural impediments or behavioral biases within asset classes. These factors are represented across deep and liquid markets in equities, fixed income, currencies, and commodities.

Our investment philosophy captures factors that demonstrate

  • Strong economic rationale
  • Opportunity to create value
  • Potential diversification benefits
  • Ability to be captured in a transparent and repeatable way
Style Advantage

Source: BlackRock. For illustrative purposes only.

Investment process

The Factors, Sustainable and Solutions team follows a systematic investment process. We leverage the power of data and technology to evaluate hundreds of securities on a daily basis. Every investment decision is evaluated by the portfolio management team to ensure it is sensible and consistent with our research.

Our strategies are managed in a team-based approach to investment strategy, portfolio management, and trading. Philip Hodges, PhD, CIO, is the ultimate decision maker for the strategy.

The investment strategies included in Style Advantage are based on the research and models employed in BlackRock’s flagship Enhanced Style Factor platform. They are highly scalable and implemented across deep and liquid markets.

The strategic portfolio allocations are based on long-run economic priors and a desire for a well-diversified and balanced allocation across macro factors. We do not adhere to a calendar rebalance, instead, we rebalance the portfolio when the benefits of rebalancing exceed the expected transaction costs.

Style Advantage

Source: BlackRock. For illustrative purposes only.

Meet our team

Andrew Ang, PhD
Managing Director, Head of Factors, Sustainable and Solutions for BlackRock Systematic
Andrew Ang, PhD, Managing Director, leads BlackRock's efforts in factor investing and is Head of Factors, Sustainable and Solutions for BlackRock Systematic.
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Philip Hodges, PhD
Managing Director, Chief Investment Officer for BlackRock's Factors, Sustainable and Solutions Group
Philip Hodges, PhD, Managing Director, is Chief Investment Officer and Head of Investments for BlackRock's Factors, Sustainable and Solutions Group.
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Alexandra Eldemir
Managing Director, Global Head of Investment Strategy for BlackRock's Factors, Sustainable and Solutions Group
Alexandra Eldemir, Managing Director, is the Global Head of Factors, Sustainable and Solutions Investment Strategy.
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