TY - JOUR T1 - Investing in the Beta Space JF - The Journal of Investing SP - 9 LP - 16 DO - 10.3905/joi.2016.25.3.009 VL - 25 IS - 3 AU - Luis E. Pereiro Y1 - 2016/08/31 UR - https://pm-research.com/content/25/3/9.abstract N2 - The beta space is a powerful way to map the investment strategies of semidiversified investors. Three metrics define the beta space: regular or exogenous betas (x-ßs), linked to macroeconomic cycles; endogenous betas (n-ßs), related to innovation hazards; and a combination of the two—the total betas (t-ßs). The beta space is the first to endow unsystematic risk with measurable entity. It debunks the myth that innovation entails high exogenous betas, and it suggests a simpler definition of style investing: Growth investors tend to favor industries with large t-ßs, whereas value investors do the opposite.TOPICS: Analysis of individual factors/risk premia, portfolio construction, portfolio theory ER -