FACTOR-BASED INVESTING

Style Advantage

Why BlackRock for Style Advantage?

Semi trucks lined up
Diversifies differently

The strategy invests in a diverse set of long/short portfolios, each of which represent exposure to a specific style factor that strives to outperform over long time periods.

Emphasis on managing downside risk

Explicitly constructed to be market neutral, seeking resilience to equity market sell-offs and interest rates moves.

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

Dedicated trading research team that forecasts explicit and implicit transaction costs across every asset class.

Diversification and asset allocation may not fully protect you from market risk. Risk management cannot fully eliminate the risk of investment loss.

Learn more about Style Advantage at BlackRock

Paragraph-2
Paragraph-3

Investment Philosophy

Style factors seek to capture 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 aims to capture factors that demonstrate:

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

Source: BlackRock, 2024. For illustrative purposes only.

There can be no guarantee that the investment strategy can be successful and the value of investments may go down as well as up.

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.

There is no guarantee that a positive investment outcome will be achieved or that research capabilities will contribute to such an outcome.

Meet our team

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.
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.