Factor MAX: A New Signal for Predicting Factor Returns (opens in new tab)

Investment professionals have long relied on factor investing—strategies built around characteristics like value, momentum, and quality—to generate returns beyond the broad market. But predicting which factors will perform well in the future has remained challenging. Liyao Wang and Ming Zeng, authors of the December 2025 study “Factor MAX and Predictable Factor Returns,” introduced an intriguing [...] Factor MAX: A New Signal for Predicting Factor Returns was originally published at Alpha Arc...