from the fact that when stocks suffer weakness in their fundamentals, the market typically overreacts to it and values them extremely cheaply relative to their current earnings. A systematic quantitative value factor investing strategy therefore buys those stocks at their cheapest point and holds them until the market becomes less pessimistic about their prospects and re-values their earnings. See also Carhart four-factor model Fama–French three-factor model Low-volatility investing Momentum investing Value investing References External links Alternative Asset Management London's Voices.com Attracts $18 Million US Investment Investment Economics