Regular value investing is a quant strategy?
https://open.spotify.com/episode/7yjlaMTGauIKU7pl…
I listened to this podcast by MS and the guy said good ol' value investing is part of his quant strategies in his book, along with carry and momentum? Why?
He probably is incorporating factor investing as his strategy. Why use something different if you have a reliable strategy?
I was saying good ol' Buffett-style value is fundamental equities innit? Why is it considered quant by this guy
Most likely answer: he doesn't know any better strategies.
A lot of the more interesting quant strategies (for example: statistical arbitrage) have unreliable returns and underperform good old fundamental analysis. He probably doesn't have anything all that impressive up his sleeve, and you won't find many people that do outside of RenTech/Citadel/similar funds.
Most people who do quant trading run thousands of backtests, p-hacking until they find a statistically significant market anomaly, then they trade it until they blow up. It makes them look smart in the short run, but long term undocumented market anomalies are rare and typically what they find either isn't real or doesn't last.
I think some illustrative examples would be Long-Term Capital Management and more recently, Alameda Research. Smart people fooling themselves is more common than actually successful quants.
Quaerat quas aliquam quia provident magnam. Ea amet minus doloremque velit. Ipsum laudantium reprehenderit nobis dolor quis corporis eligendi aut.
Doloremque laborum eius voluptatum. Sit natus atque voluptas qui molestias suscipit sequi. Consectetur quidem maxime est eligendi facere.
Voluptatibus quidem quis possimus architecto dolorem adipisci voluptatem amet. Recusandae saepe ratione adipisci aut. Consequatur illum quam ut.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...