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Quants Are Facing a Crisis of Confidence

Wall Street’s quant wizards often argue that many of their math-driven strategies are designed for the long-term, but with global equities posting the worst run in 6yrs in “Red October,” most quant  advocates were forced onto the defensive.

“I admit I’m nervous. Not about the efficacy of our strategies,” Asness wrote. “But I admit I’m nervous about how our clients will react (this is correlated with my writing this fairly giant essay). Will they truly stick with what we’ve started together for the long term?”

Tags

quant trading, capital markets