Please enable JavaScript.

Coggle requires JavaScript to display documents.

Investment (Quantitative Investment (Advantages (Dealing with massive…

- - - - Quant is able to analyzing universal stocks
        
        Example: Kieselstein claims that the quantitative investors can work with 3000-4000 stocks in U.S. and over 2000 stocks in Europe (Mariathasan, 2016)
        
        Example: The benchmark S&P broad market index has nearly 9000 stocks in universe (Mariathasan, 2016)
- - - - Fundamental investors and quantitative investors benefit from each other (Watts, 2018).
        
        Quantamental is cheaper and performs better
        
        Perspective
        
        The number of analysts and others employed on Wall Street will increase in following decades (Watts, 2018).
        
        But the combination also gets trouble sometimes
        
        The culture differences matter
        
        Fundamental investors consider the actual investigation with companies managers is the an important part in investment (Watts, 2018).
        
        Fundamental investors claim that the thoughts from human are not copyable (Watts, 2018).
- - - - The fundamental investment managers know their every stocks extremely well (Mariathasan, 2016).
        
        Example: "Acadian's funds have at least 250-500 stocks and can be upwards of 700 in some strategies (Mariathasan, 2016)"
      - Works in financial world for decades (Watts, 2018)
    - - Limited in capacity of small-cap market (Mariathasan, 2016)
      - Inappropriate for portfolios
      - Can't deal with massive sources like quantitative investment