Quant
topic on 5 shows · 12 statements across 8 episodes · said 2 times in 2 episodes since 2023
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12 statements about Quant, every show
Loeb: Pod and Quant Risk Models Force Selling, Creating Fundamental Opportunities
“They have, ah, risk metrics which have forced selling on the way down, so they do the opposite of what, it might be rational for their business model, but it's not rational for long-term investors. So you have a lot of these things that will Continue to create…”
Quants and short-horizon platforms drive 80% to 90% of institutional market flow
“We estimate somewhere between 80 and 90% of the institutional flow is basically driven either by the firms that have one month and three month agency or the quants that have to take these price signals into account, and then their models are optimized for this…”
Shkreli: 85% to 90% of top 15-20 hedge funds are quants
“Today of the top 15 to 20 hedge funds, 85, 90% are quants.”
Sandler: Quantitative models create mispricings because they cannot look forward
“What quants can't do is look forward, and how things will change over time, and so you learn the power of it, but also the blind spots, and so they can't see what next two, three quarters are gonna be, and so that led me to a conclusion where Zillow and Uber, …”
Brandywine overlooked broken culture while underwriting a complex quant strategy
“And I'm thinking in particular of quant for us, which is a space where we invested in A manager that was sort of a tax scheme, and it seemed very clever, and it was a factor strategy, so we spent a lot of time looking at factor research and understanding all o…”
O'Shaughnessy: Quants will inevitably replicate any repeatable investment strategy
“If there is a repeatable strategy where we can build a big enough sample size and do the right kind of research, a quant is going to figure it out. And the question is when, not if.”
O'Shaughnessy: Qualitative analysis and portfolio concentration protect discretionary managers
“If you can handicap future scenarios based on all that you know about a business or an industry or a trend or whatever it might be, that's going to be hard for quants to replicate. And if you can concentrate In portfolio construction, that's also going to be v…”
O'Shaughnessy: Pure quantitative strategies fail on concentrated portfolios
“If you're going to build a concentrated portfolio of a handful of positions, you can't do quant. It can't be pure quant. The stats don't work. You need to build a pretty diversified portfolio for a pure quant approach to make sense.”
O'Shaughnessy: Quant methods will never fully replace relationship-driven private equity
“Then your relationship with the seller, your skill in negotiation and deal structure, all of these things are critical and Again, can quant help inform some of that? Probably, but I don't think it's ever going to completely eat the whole thing.”
O'Shaughnessy: Quants typically avoid sector-specific data in favor of broad cross-sectional metrics
“Typically quants don't do deep industry sector specific
Data sets outside of like financials, which has been like a common problem for quants. Quants typically are looking for something you can compare cross-sectionally across the entire population of stocks.”
Galbraith: Quant and AI data scraping is a tough arms race
“All the dough seems to be moving more towards quant, more towards artificial intelligence, more towards data scraping, all these kinds of things. And I just think that's a tough game to win. It's kind of like an arms race. And some folks can do it. I think at …”
Sonkin: Quant crisis of August 2007 was driven by model uniformity
“We talk about the quant crisis of August of oh seven as a perfect example when you don't have diversity in the shareholder base. And that was what really caused it, is that you had so many quants that were using the same models, so there wasn't a lot of divers…”