TY - JOUR T1 - Practical Applications of Fire! Fire! <em>Is U.S. Low Volatility a Crowded Trade?</em> JF - Practical Applications SP - 1 LP - 4 DO - 10.3905/pa.2015.3.sb.002 VL - 3 IS - SB AU - Harry S. Marmer A2 - Mack, Barbara J. Y1 - 2015/12/31 UR - https://pm-research.com/content/3/SB/1.2.abstract N2 - Fire! Fire! Is U.S. Low Volatility a Crowded Trade? Harry S Marmer Investors seeking to lower risk have been replacing public equities with private equities, real estate, infrastructure, farmland and other absolute strategies. Harry Marmer of Hillsdale Investment Management thinks investors should consider low-volatility strategies that capture the equity risk premium without sacrificing the liquidity required by many of these other asset classes. But is low volatility a crowded trade? Marmer finds very little research evidence to support the notion.In an interview with Institutional Investor Journals , he discusses the deep roots of low-volatility strategies and identifies the signals investors should use to assess the potential for crowding. He explains why performance significantly differs across low-volatility approaches and suggests how to evaluate individual strategies. He also examines the outlook for rules-based quantitative strategies. ER -