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by leelin 2837 days ago
Interesting point on why increased correlation hurts traditional stock pickers and market timers. Does this make a case for quantitative hedge funds doing better?

Quant funds are in a good position to put on a large basket of long and short positions (with leverage), and therefore can separate individual stocks from their confounding market factors. Of course, it presumes the fund has a strategy giving them enough conviction to bet on individual stocks / securities.