- RECS is an around $31.5 million passively managed fund focused on delivering alpha by selecting the most promising stocks from the Russell 1000 index using a proprietary ranking system.
- Funds that use intricate factors rarely outperform the market, but RECS is a surprising, encouraging exception that managed to outmaneuver it over the periods discussed in the article.
- I appreciate its exposure to the quality factor (assessed using the Quant data, margins) but warn of the valuation risk.
- Liquidity is an Achilles' heel. RECS is a Hold.
For further details see:
RECS: Powerful Strategy Begetting Alpha, Though Size, Liquidity Amongst Vulnerabilities