Quantitative investing
Factor-tilt approach
A method of implementation where part of a portfolio is invested specifically in factor strategies.
Specific factors that may be under-represented in the 'standard' asset allocation are added in this approach using dedicated factor strategies.
Figure: Factor Tilts
![Figure: Factor Tilts](https://images.ctfassets.net/tl4x668xzide/2Y77sAsVG1ozGanBbuIvCj/631a6af317d059cd268d31a0377dee99/factor-tilts.jpg?fit=pad&w=800&h=522&f=center&fm=webp)
Source: Koedijk, Slager, Stork: 'Factor Investing in Practice: A Trustees' Guide to Implementation' (2014).
Different approaches to implementing factor investing can be distinguished, such as the risk due diligence approach and factor optimization.