This link has been bookmarked by 2 people . It was first bookmarked on 21 Jun 2008, by Suj Chow.
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06 Aug 08
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trust a computer model to run your investments? Because, in the real world, it seems to pay off.
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ecommendations of a proprietary computer model, known as quantitative or quant funds, have outperformed their benchmarks in the last three years.
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examine a much larger universe of stocks than human analysts.
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superior risk control. Most models keep sector and equity picks within the benchmark attributes they are built around. This process reduces the risk that may otherwise be introduced by active managers who decide to make a bet on a particular sector or stock
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biggest criticism of quantitative models: their reliance on historical data and their inability to assimilate new information quickly
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continue to look for new factors to add to the models because oftentimes the efficacy of a particular factor is either not recognized by the models or gets arbitraged away over time."
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21 Jun 08
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