Why Quant Now? – Cantab Capital

Why Quantitative Strategies Now? by Anthony Lawler, Adam Glinsman – Cantab Capital Is your diversified portfolio a single factor bet? Investors in equities and bonds have been nicely rewarded since the Global Financial Crisis (GFC) as both asset classes have rallied substantially since. It has been a great dual beta trade. But fundamental investors searching for value opportunities have, by and large, struggled to outperform since 2010. Why is that so, and are these two points related? Quantitative Strategies Part of the answer is that fundamentals – the valuation metrics, such as the price-to-earnings (PE) ratio, which investors use to…