Web Statistics Quant Investing Could Be The New King On Wall St - The Quants Run Wall Street Now

Thursday, 25 May 2017

Quant Investing Could Be The New King On Wall St - The Quants Run Wall Street Now

 Quant Investing Could Be The New King On Wall St - The Quants Run Wall Street Now

" Quant Investing Could Be The New King On Wall St - The Quants Run Wall Street Now" 

in the news  Quant Investing Could Be The New King On Wall St - The Quants Run Wall Street Now? What this all about..... See below. 


Sentiment Trader see a lot of interest and acknowledgement with bigger funds this month with just how important Quants are on wall st. We are at the beginning stages of the acknowledgement and really realize the dominance.

What we are looking at is this is now a real factor and not just some conspiracy theory out there like some are predicting. While some people are referring to "hey who are these whiz kids with the algorithms" and "is this stuff seriously going to make you money" well the answer to that is multifaceted, but over the last 12 months, billions of dollars have been made using this special new technique. 

Right now its all about your discipline, process, technique and the data crunching fire power. But little by little and day by day you have these traders out there using quants to capture these fleeting moves. 

This is really what we use to call fundamental investing, however its just used in a disciplined way, where you use data, earnings momentum and its happening in a more regulated fashion. 

But with alot of millennials saving money and going and putting their money in some of these quant funds, do they really understand what is going on, and how their money is being invested. And the real question is what sort of transparency is there going to be in the future about what sort of physical trades are being made. 

That is a funny question, and there is an irony here, and that is the investors in quant funds, are getting more comfortable with the process. But even as that is happening, its getting much more complicated, the models are much more complicated, the algorithms are much more complex, and not what they use to be.  
Lets be honest, these are not high frequency investors, because sometimes they hold their investments for a few months, and that gets the members or investors a little more comfortable. In the past, these funds were advertised to hold for a few minutes or in some cases, hold positions for just a matter of a few seconds. 

The real reason people are moving from the more traditional type of techniques of investing are because, why would you put money into active type fund managers, where the performances have worse for years, they charge way to much fees, there is more data they cannot digest on a daily time frame, then there is the old school technique of talking to old school investors and also ex employees, you cannot do that any more. So in some ways, that is why the quants are doing better, because the other old school type investors are doing so poorly. 

Also we have to remember these quants have an overall edge in the current times. You might want to argue that we don't yet quite understand that edge, but due to the very good performance over the last 24 months, its pretty clear that they have one. That is largely greater than that of the active investors who sit down and crunch numbers, and you cannot get that extra added advantage anymore. That is why quants have a very very bright future on wall st and over the last 12 months have just attracted even more clients to their funds.  

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