Value, Growth, Quality, Momentum, and Liquidity Factors

Plain-English definitions for the major factor tilts used by SurgeFlow across global equities.

Category: Factor Research

Factor labels

SMB maps to small-cap versus large-cap tilt. HML maps to value versus growth. WML maps to momentum versus mean reversion. RMW maps to quality versus weak profitability. CMA maps to conservative versus aggressive investment. LIQ maps to illiquidity premium versus liquidity preference.

Direction can change

A factor can be academically defined one way while recent realized evidence favors the opposite tilt. SurgeFlow separates convention from effective direction so the agent does not blindly chase stale labels.

Long-only implementation

Inverse direction does not mean short selling. It means selecting long-only stocks with the opposite beta or characteristic tilt.