Their name itself is Quant, so it is no surprise that they go where they expect make some profit, so they change their views. Keynes said that he changes his views when facts change, so a fund’s management changing its views is not surprising or wrong. Their current views could be wrong do, after a few months, they may say something else. Booking profit at appropriate times, cutting losses quickly, moving from one opportunity to another, even at institutional level is beneficial, more so when investors are expecting miracles.
The other point you have mentioned is a pertinent one. If the AUM grows, would they be able to generate the same kind of returns? Can their strategies handle larger sums, considering the size of the market and investible universe is not that big?
No investment in Quant.
| Subscribe To Our Free Newsletter |
