Quants Find Profit in ETF Anomaly

Quant strategists at Deutsche Bank have found that investors can “beat equity benchmarks by building portfolios out of stocks that get whipped around the most when exchange-traded funds rebalance.” This according to a recent article in Bloomberg. According to the article, the strategists recommend: “Bet against the ones they buy and buy the ones they sell.” It adds, “If all you did was go long stocks with the most negative ETF flows over the last 12… Read More

Lessons From a Quantitative Investing Conference

By Jack Forehand (@practicalquant) —  I had the privilege to attend the Democratize Quant conference last week put on by Wes Gray and the team at Alpha Architect. The conference allowed a small group of investors to come together to discuss the practice of quantitative and factor investing and the best way to use these types of strategies to build portfolios. Despite the fact that the conference focused on investment professionals, there were many lessons in… Read More

Validea Hot List Newsletter: Quant Investing Still Requires Discipline

In our most recent Validea Hot List newsletter, we address the different implications and forms of quantitative investing. We cite varying industry points of view, including that of Newfound Research’s Corey Hoffstein who argues, “For the market to function, someone has to perform information discovery on individual stocks.” The newsletter also references a comment by Wall Street Journalist Gregory Zuckerman in a recent podcast, in which he underscores that there is a continuum of quant… Read More