BlackRock’s March announcement that the firm had reduced its staff of stock pickers to increase its focus on quant strategies may support the consensus that “active management is dying,” but Bloomberg columnist Nir Kaissar argues that “the problem is not that active managers fail to outperform the market; it’s that they keep that outperformance for […]
Research shows that trading strategies built around tweets in the days preceding Fed meetings have been profitable, writes Steve Russolillo in this week’s The Wall Street Journal. As the use of quantitative investment strategies continues to rise, social-media platforms such as Twitter have become popular sources of intel to gauge investor sentiment, says Russolillo, referring […]
While the financial crisis of 2007 spurred a lot of questions regarding the role that quantitative investment strategies played in the market’s drop, these strategies continue to evolve, writes Validea CEO John Reese in this week’s Forbes. Reese gives an overview of the evolution of quant investing, which has been used for decades, and the […]
The quant craze in investing doesn’t come without its own set of challenges, says a recent Bloomberg article. As hedge funds delve headlong into the data world to hoist up returns and stay competitive, some may lack the prowess necessary to harvest relevant and accurate numbers, says Matei Zatreanu, who led the charge at $19 […]
Anthony Ledford, chief scientist at U.K.-based investment management firm Man AHL, has mixed feelings regarding the hype around quantitative models and their potential impact on the hedge fund industry. In a recent Bloomberg article, Ledford (who holds a Ph.D. in mathematics) says, “There is some real science here, but it’s not the way it’s been […]
As hedge funds continue to lose clients due to lackluster returns, purely numbers-based investment strategies are gaining popularity. Validea CEO John Reese speaks to the trend in a Nasdaq article published last week. Like those of our guru-based screening models, these strategies are built purely on the underlying fundamentals of a business. The following picks […]
If you’re looking to land a job at a hedge fund, polish up your algorithm building and data mining skills to get to the front of the line. This according to a recent Bloomberg article that explains how hedge funds are hiring quants “like never before in search of an answer to lackluster returns.” King […]
As hedge fund managers continue to grapple with losing dissatisfied clients, those funds more highly-focused on a computer-driven approach (so-called “quantitative” hedge funds) are standing out, the Financial Times reports. According to FT, the flow of investor funds into the “quant” sector have more than doubled since 2009 (from $408 billion to nearly $880 billion). Several […]
The advent of stock screening software has made it possible for investors to search using any number of metrics, but that’s only part of building a successful investment portfolio. This complex process is the subject of an article by John Reese, founder of Validea Capital Management LLC., in the July issue of The American Association […]
“Humans aren’t going to be completely replaced, but they will be mostly replaced,” says Sudhir Nanda, head of T. Rowe’s dedicated “quantitative management” arm. In a Financial Times article earlier this year Nanda, who manages T. Rowe’s Diversified Small-Cap Growth Fund, predicted that the traditional management industry will become increasingly technology driven. He is not […]
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 […]
Like many quantitative investors, Validea CEO John P. Reese uses a strict rebalancing approach to portfolio management. But just how often should you rebalance your portfolio? Reese says it may depend on the type of strategy you are using. “Rebalancing forces a disciplined buy/sell methodology into the investment process, removing emotions and biases that oftentimes […]
Barron’s reports on mid-cap fund managers Neil Hennessy and Brian Peery, who manage Hennessy Cornerstone Mid-Cap 30. Peery says, “A lot of financial advisors don’t allocate in the mid-cap space, which gives us an advantage.” Mid Caps have outperformed Large and Small Caps over 10, 15, and 20 years, and the Cornerstone Mid-Cap fund has […]
With so much having changed in the financial world over the years, can decades-old investment strategies still work today? Validea CEO John P. Reese says they certainly can.
In a recent article for Canada’s Globe and Mail, Validea CEO John Reese says that when it comes to investing, boring is beautiful.