Hail to the quants…

I’ve written before about the merits of systematic trading…indeed I do a bit myself, in addition to investing with some quant shops.  Anyway, looks like they had a better year in 2014 than most stock pickers.  Congrats to those who have been long-term patient with the momentum traders – as expected/hoped/implicit in momentum strategies, years of lacklustre performance (e.g. 2009-2013) were more than compensated by 2014’s returns for a great many funds.

This leads to both Q & A:

  • A: I distinct recall speaking with many existing/potential investors in managed futures/systematic trading, in which the question was asked: is momentum dead?  Are the systems broken?  Hopefully 2014 helps answer that.
  • Q: is the performance of 2014 sustainable?  For example, 2008 was a great year for the strategy, with a bad year in 2009.  So will 2015 be like 2009?  I wish I knew, but for the moment I’m staying invested.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s