As the book about the most successful quant, Jim Simons, comes out tomorrow (“The Man Who Solved the Market”), I felt inspired to review the ‘recent press’ on quant investing, but with a focus on the quantamental theme - where quantitative and qualitative ideas can ‘collaborate’ well to produce alpha.
Sorted by date:
1. Human Insight, Computer Power: What is Quantamental Investing? [Link]
October 31, 2019
Quantamental investing seeks to understand the depth and the breadth of the investment world. The goal is to produce superior returns in the marketplace by answering two questions.
What are the best metrics for predicting success?
Which are the companies performing the best on these metrics?
Quantamental investing harnesses the raw power and scale of data, coupled with human insight — increasing market returns by finding the next great investment.
2. Pros and Cons: Quantitative versus Fundamental Analysis [Link]
July 10, 2019
Ultimately it makes sense for a combination of quantitative and fundamental analyses to be incorporated into an investment process.Quant rankings can help save time when generating investment ideas, essentially getting an analyst “into the right ballpark.” Quant tools can also help identify improving/deteriorating trends within sectors, industries or companies and essentially play devil’s advocate against a popular opinion. Fundamental analysis can then add value by carefully looking at the business model, management team, competitive landscape and future earnings/cash flow potential.
3. “Quantamental” Is The Hot New Investing Trend As Conviction Runs Low [Link]
June 28, 2019
Investors seem to be getting less and less sure of the investments they're making too. BofAML found increases in multiple factors. The firm explains this as a combination of the convergence in style factor popularity and increasing flows into factor-based funds. The problem is that it has become quite difficult to diversify factor-based investment approaches. The firm adds that the correlation between growth, value, quality, momentum, risk and size has soared to nearly post-crisis highs.
4. AI and Alternative Data for Quantamental Investing [Link]
June 17, 2019
Quantamental investing strategies are no replacement to fundamental analysis or even for some kinds of present-day technical analysis – but it allows investors the ability to draw data from the real world (not just abstractions from the stock market) to inform their investments – and that’s a trend we can expect to continue.
5. The Future of Investing is Quantamental [Link]
May 2, 2019
Quantamentalists are basically fundamentalists who make use of quantitative techniques for a more informed direction. They may employ data scientists or Machine Learning experts to build algorithms that scour through large volumes of data to look for trends, which can then provide the fundamental human stock pickers with a more concise form of information to work on and analyze further.
6. Quantamental Investment Strategies—An Overview [Link]
May 1, 2019
Quantitative strategies require access to high-quality structured or structural data and significant computing power. The workflow does not significantly differ from the standard and sequential approach of data gathering, cleaning, structuring (labeling, mapping), and deployment; universe definition (screening for liquidity and tradability, size and demand); cross-sectional alpha discovery and aggregation (statistical analysis and portfolio selection); and trading.
7. The Rise of ‘Quantamental” Investing: Where Man and Machine Meet [Link]
November 20, 2018
The solution was to evolve and meld man and machine. Analysts have dubbed marrying quantitative and fundamental investing “quantamental”, an admittedly ugly phrase, but one that many think will define the future of the asset management industry.
8. The Next Frontier in Investing is ‘Quantamental Stock Picking [Link]
October 29, 2018
In fact, the growth of quantamental techniques and advances in artificial intelligence and other technologies means that the number of analysts and others employed on Wall Street in the next 10 to 20 years is likely to fall sharply as productivity increases, Bochman said. For investors, that should mean cheaper products that perform better.
9. Quantamental Investing: The Future is Now [Link]
May 2018
By tapping both sources of excess returns, we believe we can achieve greater consistency of returns and help investors avoid behavioral-based pitfalls.
10. Can Quantamental Save Active Investing? [Link]
April 19, 2018
The goal of this approach is not to replace human analysts with machines, but to leverage the strengths of each. We are better at asking questions. Machines can help with the answers.
11. The Hot New Hedge Fund Flavor is ‘Quantamental’ [Link]
August 25, 2017
There's nothing magical about quant strategies. If anything, they're the opposite of magic. Models are built, numbers are crunched and the outcomes trigger buy/sell decisions. Maybe an oversimplification, but the approach constitutes a safety in numbers approach, with the bonus of removing any emotional response that a human might inject into the process. But the models are only as good as the humans who build them, so a strong quant team will keep its models flexible to avoid derailment when abnormal market events inevitably occur.
12. Investors, There’s Nothing Magical About Quant Strategies [Link]
May 23, 2017
There's nothing magical about quant strategies. If anything, they're the opposite of magic. Models are built, numbers are crunched and the outcomes trigger buy/sell decisions. Maybe an oversimplification, but the approach constitutes a safety in numbers approach, with the bonus of removing any emotional response that a human might inject into the process. But the models are only as good as the humans who build them, so a strong quant team will keep its models flexible to avoid derailment when abnormal market events inevitably occur.
13. What is Quantamental Anyway? [Link]
Jan 24 2017
Becoming "quantamental" does not require that a manager change their identity, eliminate human judgment or start chasing price momentum. It does, however, require that they introduce more discipline into their investment process by measuring each component and increasing the integration between them.
14. How Does ‘Quantamental’ Fit with Factor Investing? [Link]
January 9, 2017
The main advantage of this ‘quantamental’ approach is to propose a combination of the strengths of quantitative and judgmental/fundamental analysis – it’s a way of overcoming the opposition between man and machine in order to improve both.
15. Quantamental Investing: The best of Both Worlds? [Link]
June 29, 2015
Quantamental investing is just one way among many that investment managers are being creative so that they can bring the best results to their customers.
16. Combining Quantitative and Fundamental Analysis: A Quant-Amental Approach [Link]
October 2014
The authors highlight three portfolio approaches to combining a quantitative model’s signal with the research opinions of fundamental analysts—a quantitative model as a screen, a validation source, and an independent source of alpha. Using this knowledge on a standalone basis, practitioners could create their own equity investment portfolio using the steps and sources listed to generate long-term excess market returns.
Bonus:
Quantamental Investing: A Fuzzy Term That Describes An Inevitable Future [Forbes] Dec 12, 2019
Quantamental Investing: The Future of Finance [Video] Aug 8, 2019
The success of quantamental investing is rooted in process (Bloomberg) May, 2018
Fundamental… or Quant? (Podcast) October 3, 2018
Quants—The Alchemists of Wall Street [Video] 2010