The balance here is clear: if researchers present evidence drawn from a limited dataset as large-scale validation, institutional fund managers will ignore these claims.
The incentive for the author is quick publication, but the risk for the market is misplaced confidence in an unproven tool at scale.
A pension fund managing billions of assets and thousands of positions cannot extrapolate a test on 250 S&P 500 stocks to its overall strategy.
Liquidity constraints and the complexity of global markets require much more granular and scaled testing for the interpretation to be relevant.
The asymmetry of gain is evident: publication for one, systemic risk for the other.