Behavioral Factors and Their Performance in Emerging Markets

CFA Institute

At the 71st CFA Institute Annual Conference in Hong Kong, Jason Hsu of Rayliant Global Advisors and the UCLA Anderson School of Management, explains factor investing using a novel and important dataset by examining the traditional behavioral anomalies documented in global data and examining whether they are also valid when applied to China A-shares. Hsu presents an empirical study that provides insight into the behavioral mechanisms behind various anomaly factors, and looks at behavioral factors that arise in markets with investors who make mistakes by going a step beyond identifying anomalies in China or testing traditional factor methods using A-shares data.