Quant Funds

  • 01 Jun
    Read This Before Investing In That Quant Fund

    Read This Before Investing In That Quant Fund

    • As long as there is stability, quants will do well. But when liquidity goes, so goes the quant fund.
    • Long Term Capital Management is a perfect example of how quickly a quant trend can turn into a quant fad.

    Introduction

    Quants are the hot thing on Wall Street.

    Common sense doesn’t seem to work anymore as stocks are completely detached from their fundamentals and capital flows don’t really react to macroeconomic or specific company news. In an environment where no one knows what to do to beat the market, it’s completely normal for new trends—or better, new fads—to rise to a level of fame that will turn to notoriety. More →