Factor investing was first noticed when CAPM was introduced in the 1970s. The model stated that stocks to a certain extent are affected by bet (broader market). It was a single factor model which included the market and the company’s profile as the factors which affect the market.
Fama-French model is a multiple factor model which stated that factors like style and size of the company also act as drivers.
The recent studies deduced that stock price drivers are not limited to CAPM and Fama- French model but also includes factors like volatility, quality, momentum, value, size to name a few.
