In June, the Dow Jones Industrial Average ejected General Electric Co. in what a recent Wall Street Journal article describes as an “effort to adapt a 19th-century index to a 21st-century economy.”…
Day: August 2, 2018
Trouble for Quant Hedge Funds
The rise in market volatility has resulted in poor results for many quant funds, according to a recent Bloomberg article that says, “They were caught flat-footed in February when markets turned…
Wall Street Looks to Superforecasting
The importance of accurate forecasting is leading some firms to using so-called superforecasting—a statistical approach in which “large numbers of estimates are averaged to find the most likely answer.” This…
Morningstar on Investment Truths
A recent article in Morningstar recounts insights from AQR’s Cliff Asness on the following two questions: Can current stock valuations help predict future returns? “Probably yes,” writes Asness, “but not…