Quant Investing

@basumallick – Really enriching experience to read this thread. Difference perspective to investing I must say.

Also, have observed that some old timers (20-30+ years in market) who started PMS seem to follow/use Quant/Algorithms etc. – i.e. mechanical aspect sans human thoughts/emotions. and seem to be doing quite well. Same I came to know about Quant mutual funds from this thread.

Some doubts as a beginner in understanding Quant system –

1. I see that you follow multiple hats as you mentioned – Quant, fundamental/core long term and positional trades etc. and maximum CAGR seems to be coming from Quant out of these three. In this context, would like to know what do you feel is the strength & weakness for each of these styles (specially long term core vs Quant since you still seem to believe in long term core as well) and why did you not transform into a full Quant style? Is that the ultimate goal to transform to Quant as much as possible as that provides maximum CAGR?

2. Is Quant investing being followed in west, specifically US, since long time? Like how passive investing is old in US and picking up in India…is that a similar thing happening for Quant? If yes, we can understand globally how Quant based funds/investors have fared over cycles instead of backtesting? Just a thought…

3. Apart from quality of data & refinement of one’s own style, what do you feel is the biggest drawback of Quant investing?

4. If Quant provides massive CAGR upsides compared to other styles, why most big investors, FII, Mutual funds not full blown into Quant? They must have access to best quality data…Is it because of inability to develop a suitable Quant style so far or some other reason?

Thanks again for presenting this really intriguing & different aspect of investing. More than that really liked the way you have followed through and keep adding immense value & growth in this thread.