Billions have been pouring into low vol funds in the past few years. While this phenomena that “risk does not equal return” feels new to many, it has been well known and published for over thirty years.
I was sad to hear that one of the all time great quants, and all time great independent market thinkers passed away recently – Bob Haugen. Bob was writing about low vol investing since before I was born, and he has written many books that I can see right now on my bookshelf, all worth a re-read and certainly a first read if you have never read them.
While he is credited as one of the top 20 published authors in finance, his final paper is here, “Low Risk Stocks Outperform Within All Observable Markets in the World”
Rest in peace Bob (obituary here)…
