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Komfie Manalo, Opalesque Asia:

Crowdedness is a risk which has to be included into the risk management and a risk factor in investing, stated Ahmet Peker, senior portfolio manager at the Quantitative Fund Management division of Deka Investment at the latest 2017 Opalesque Germany Roundtable .

Peker told participants of the Roundtable that risk has to be viewed from different perspectives, not just through a volatility measure, but also in terms of risks which are hidden or implied into a strategy.

"The aspect of crowdedness is discussed in markets regularly," Peker said. He added, "Crowdedness is also mentioned a lot now in regards to factor investing, which became very popular over the last couple of years. A lot of assets have been flowing into factor investing, especially on the equity side. There are big ETFs that collected a lot of money. Inflows were quite high. And yet, if you look at the assets under management which are based on factor investing and compare it to the whole industry, it's still at a very low level."

Peker explained that there are very different ways of implementing and executing factor investing, in the same way investing into volatility can be done in different ways. It does not mean that all strategies are aligned and they all do it the same way, he said, and added that investors want to make su......................

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