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Q U A N T I N V E S T I N G

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Thread replies: 11
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To those of you in finance or with investing knowledge - what do you think of hedge funds recent obsession with "quant" investing - algorithms, higher level mathematics - driving trading behavior?

To me it seems somewhat akin to the age old errors of Wall Street - analysts trying to predict the future of stocks with questionable techniques which work in the short run, and seem to always fail in the end.

Any opinions?
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>>2153132
It's bullshit.
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>>2153132
It obviously does not predict the future. It is a useful tool, better than random I think.
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>>2153132
I really want to learn the maths used, could someone give a quick rundown of that please? (I know maths in general would be the correct answer, but I want more focus)
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>>2153314
I don't have experience with quant algorithms in particular, but they likely use complex differential equations.

Essentially, equations you feed variables into (in this case, various financial metrics), which then return some sort of scoring of financial assets.

If you aren't familiar with calculus, I'd start there. Calculus is the basis of differential equations.
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>>2153132
Look up Renaissance Capital
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>>2153448
I had a feeling it had something to do with changes in rates, makes sense.
>>
Too many hedge funds using similar quant techniques, it just leads to market normalization. Take a look at average return rates of hedge funds and notice how they haven't been outperforming everyone else
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>>2153488
Their Global IPO fund is a complete joke, my god. Laughably bad returns most years and almost 5% in management fees - truly a terrible investment.
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>>2153695
What exactly is a IPO fund? They invest into private prior to IPO? Also 5%??? Jesus fuck thats high?
>>
Thread posts: 11
Thread images: 2


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