#quantitative-investing

#quantitative-investing

The mistake originates in logic. Logic reduces life to statistics. And statistics convert real-world business into spreadsheets of digits: total income, net profit, employee productivity. . . Those mathematical values are then scoured by logic for patterns and trends. Which is to say: The spreadsheets are fed into AI machine learning systems or analyzed by traders who (by engaging Daniel Kahneman's system 2) have rigorously purged their minds of bias.

Geoffrey Lauprete, who worked at WorldQuant for 17 years until 2024, will take over starting next month, according to the memo, which was seen by Business Insider. "Denis expanded Cubist's global footprint, grew our pod model, and built our central team from the ground up. His leadership and expertise have made a lasting impact on the firm, and we wish him all the best in his future endeavors," Cohen wrote in the memo.

The Primer opens with a kind of confession. Ideas that sound brilliant, like buybacks drive performance or retail traders are reliable contrarian indicators, have all been tested. And over the long haul, they just don't work. Not consistently. Not across timeframes or across regions.