Bloomberg is reporting in a story today that quants are the only hedge fund category to buy additional stock in 2016. These tactics have helped computer-driven investors benefit from a market rally in the energy sector that has occurred since February 2016 lows, resulting in over $250 billion in recent market capitalization to energy stocks. Fundamental managers mostly missed the rally, according to Credit Suisse’s Global Head of Portfolio & Risk Advisory, Mark Connors.
According to Connors, “(W)hen the rate of change of prices skyrocketed from 30 to 70 percent higher, that momentum is not lost on quants. Not only do they have a lens and a process that caught these changes, in addition, these managers were able to exit shorts and get long these names as they were rising,” “Fundamental guys have a slower trigger. They’ll look at quarterly data, competitive pressures and other industry dynamics and company specifics.”
Original Source for Story: Bloomberg