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Got the Chops to Run the Factor Investing Derby?

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In honor of the Kentucky Derby and Triple Crown run, OppenheimerFunds is using today as its launch pad for its first Factor Derby competition, which allows advisors to compete by building “thoroughbred portfolios” using a combination of five common investment factors. The purpose is to educate advisors and their clients about factor investing — and give back in the process as Oppenheimer Funds will donate $5 per contestant up to $10,000 to the Boys & Girls Club of America.

“We’re trying to do different things to get people to better understand what factor investing is,” said Sharon French, OppenheimerFunds’ head of beta solutions. “We need to debunk the myth that [factor investing] is more complicated or stretching your intelligence further than you’re comfortable with.”

Advisors have until May 31 to construct their portfolio using these investment factors: momentum, low volatility, size, value and quality. The contest runs from June 1 through Aug. 31, with the winner — judged by the player with the highest total rate of return — receiving a “purse” of $25,000 to donate to the eligible charity of their choice. The winner will be announced on Sept. 4, while a leaderboard will show regular updates.

“While factor investing may be new to many investors, the concept of combining multiple factors to generate alpha has a long track record of proven success,” French said. OppenheimerFunds has eight factor/smart beta funds.

Participation is free and open to the public. “Jockeys” register at, where they can name their horse, pick their outfit/colors and select factor allocations.

— Check out Goals-Based Investing and 4 More Trends for Advisors to Watch on ThinkAdvisor.


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