Chasing Hot Returns in 'SmartBeta' Funds Can Be a Dumb Idea

(Wall Street Journal) -- Because computers and access to data are proliferating, the odds that strategies are based on “statistical flukes without theoretical support” is rising, warns Marcos López de Prado, a senior managing director at Guggenheim Partners, an investment firm in New York that manages about $240 billion. “For now, our best shot is to educate the public,” he says, “because not everyone in the industry is going to come clean.”