Connaughton: Quantitative factor analysis eliminated hedge fund arbitrage business models over time
John Connaughton · Private Equity Master 2: John Connaughton – Bain Capital (Capital Allocators, EP.201) · Jun 28, 2021 · at 38:39
John Connaughton, Co-Managing Partner of Bain Capital, explains why the firm avoids quantitative factor strategies in public equities in favor of fundamental concentrated long positions.
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“If you sort of think about all the arbitrage that was being taken out of the market by information and factor analysis and a lot of the quantitative public investors that are out there, that's not our style and certainly never was our style, but it was the style of a lot of people that were wringing out all those arbitrages and that created a business that no longer was a business over time.”
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