Wall Street’s Most Famous Quants Fed Up With JPMorgan Soothsayer
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Risk parity, trend-following strategies used as scapegoat: AQR
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Size of industry overestimated in bank research, firm says
Don’t listen to Marko Kolanovic.
Or anybody else who tells you quant managers regularly whip up bouts of pain and suffering for stock investors. Funds with programs that follow trends and sell like robots are getting smaller and simply aren’t big enough to overwhelm the $24 trillion U.S. equity market.
That view comes courtesy of AQR Capital Management which, it should be noted, is far from an unbiased observer, given the $172 billion investment house pioneered many of the strategies coming up for vilification. AQR’s quants say they’ve had it after listening to more than a year’s worth of hectoring from analysts who blame managed futures and risk-parity strategies for everything from August 2015’s China meltdown to the post-Brexit plunge…
Wall Street’s Most Famous Quants Fed Up With JPMorgan Soothsayer
