“Quantimental” Fund Management Raises Eyebrows

It seems that name-melding has extended beyond the ranks of celebrities (think Brangelina and TomKat) to the world of fund management. An article in this month’s Pensions & Investments explains how, in the face of disappointing performance, hedge fund managers are integrating quantitative strategies into their fundamental approaches in an effort to improve results. Lin William Cong, finance professor at the University of Chicago’s Booth School of Business (and self-proclaimed inventor of the term “quantimental”) says market data is showing an “increasing use of quantitative tools” (that incorporate complex risk factors such as value, momentum and volatility) into the management […]

Fundamentally Sound Stocks Win When Recessions Loom

Whether it’s interest rate hikes or China’s slump or US weakness, investors have found a myriad of economic reasons to worry in 2016 — and they’ve expressed their worries by pulling billions of dollars out of stocks. But in his latest for Canada’s Globe and Mail, Validea CEO John P. Reese highlights some new research showing that the best time to beat the market is when economic times are tough. “The research comes from O’Shaughnessy Asset Management (OSAM), which is headed by quantitative investing guru James O’Shaughnessy,” Reese writes. “The group invests using a number of ‘factors’ — that is, […]