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Dec 1, 2025

Understanding Factor Investing

A plain-language tour of the 18-factor model powering attribution.

Most portfolios earn returns from systematic factors like market beta, value, momentum, or size — even when investors think it’s stock-picking skill.

Our Barra-inspired model decomposes performance into factor contributions versus specific return (alpha).

Use factor exposure to spot unintended tilts, diversify risk, and measure whether you’re actually generating alpha.