This book investigates how investors can move beyond traditional asset class labels to identify and harvest the underlying factor risks that drive investment returns. Andrew Ang, a professor and financial consultant, synthesizes years of academic research and practical industry experience to propose a framework centered on factor investing. He argues that by decomposing portfolios into their constituent risk premiums, investors can better navigate market volatility and achieve superior long-term performance. The text provides a rigorous analytical structure for understanding the economics of risk and the pursuit of alpha.

Experts and practitioners frequently cite this work as a foundational text for understanding the mechanics of factor-based investing. Readers often note the academic rigor of the prose, which balances complex financial theory with actionable insights for portfolio management.