Top Hedge Fund Uses Algos to Drive Performance

Pete Muller, who runs PDT Partners, is described by Forbes as “the latest, greatest member of a growing band of hedge fund [managers] that use complex math and computer-automated algorithmic models to buy and sell stocks, futures and currencies based on statistical correlations and aberrations that can be found in the market.” Muller, who worked with Mogan Stanely for years before taking a hiatus in 1999 and eventually starting his own venture, has a strong… Read More

O’Shaughnessy: Timeframe Is Most Investors’ Biggest Mistake

James O’Shaughnessy’s What Works on Wall Street is something of a bible for quantitative investors, and in a recent Investors Podcast, O’Shaughnessy talked about what his vast amount of research has taught him. O’Shaughnessy says it is critical to understand human nature if you want to succeed at investing. While his book detailed how dozens of quantitative strategies have worked over several decades, he says he wasn’t worried that disclosing the information would lead to… Read More

O'Shaughnessy on Investor Psychology, Bond Market Trouble, and Why Value Wins

In a wide-ranging interview with Barry Ritholtz on Bloomberg View, quantitative investing guru James O’Shaughnessy recently talked about why human beings are such inferior prognosticators compared to computer┬ámodels, what that means for investors, why stocks may well be safer than bonds over the long run, and why holding period duration is so critical.