As data volumes expand and market dynamics evolve, the challenge has shifted from identifying factors to understanding how they should be weighted at the company level. PGIM’s Quantitative Equity team presents its contextual model, a bottom‑up, life‑cycle–aware approach that dynamically adjusts factor weights to better capture alpha where traditional sector‑ or region‑based models may fall short. By recognizing the diverse growth trajectories within sectors and leveraging market‑driven signals in real time, the model uncovers opportunities typically masked by broad‑brush approaches.

For investors seeking a more adaptive and economically grounded framework to multi‑factor investing, this research provides a compelling perspective on how a more nuanced approach to factor weighting may have the potential to materially enhance outcomes.