The Golden Age of Quant

Throughout the past 45 years, the crux of quantitative portfolio management has evolved through advances in three spheres: (1) domain expertise (market savvy), (2) data superiority (smart not just big), and (3) digital (econometric models). The data and digital of the 1970s and 1980s now appear rath...

Full description

Saved in:
Bibliographic Details
Published in:Journal of portfolio management 2019-11, Vol.46 (1), p.12-24
Main Author: Sorensen, Eric H.
Format: Article
Language:English
Subjects:
Capital assets
Discount rates
Earnings
Economic models
Economists
Equity
Fair value
Financial services
Investment policy
Investments
Investors
Portfolio management
Prices
Professionals
Securities markets
Citations: Items that cite this one
Online Access:Get full text
Tags: Add Tag
No Tags, Be the first to tag this record!
Description
Summary:Throughout the past 45 years, the crux of quantitative portfolio management has evolved through advances in three spheres: (1) domain expertise (market savvy), (2) data superiority (smart not just big), and (3) digital (econometric models). The data and digital of the 1970s and 1980s now appear rather primitive. Quantitative practitioners have survived (and at times thrived) through creative innovation. The author briefly discusses some examples of evolution identified with relation to these three circles. As in the past, successful managers will prosper with creative discovery and positioning at the intersection of these elements—domain, data, and digital. TOPICS: Statistical methods, simulations, big data/machine learning Key Findings • Successful investing in quantitative equites dates back to the time of the E-model in the 1980s and has had a golden evolution. • The passion for research discovery and creativity will continue to advance the practice in the future. • Future leaders will position themselves at the intersection of the three ever-present spheres: (1) domain expertise (market savvy), (2) data superiority (smart, not just big), and (3) digital (econometric models).
ISSN:0095-4918
2168-8656
DOI:10.3905/jpm.2019.1.109