As traditional alpha fades, Karan Aggarwal, Co-founder & CIO of Elever PMS reveals why India is following the global shift toward quant-driven, rule-based strategies and how Elever is leading the charge
With over $8B in assets tracking his work, karan’s key learnings are:
Stock picking woes
As markets mature the world over, traditional stock-picking methods struggle. Over decades, 90% US of large & mid-cap funds have underperformed the S&P. Passive equity fund assets have surged from 20% in 2010 to 60% today, while active funds have lost $2T in outflows over the last decade.
Factor focus surge
US Portfolios are shifting from mutual funds to index ETFs and rule-based factor funds. By the 2010s, new factors like volatility, quality, and momentum emerged. As markets grew more efficient, and active alpha rapidly faded, US investors moved toward quant-based strategies for consistent returns.