Will Quant Funds Cause the next Crash? There has been a lot of talk lately that quant and passive index funds could cause another 1987 style crash.  Most recently there was an article from Business Insider which discusses a letter to clients from Highfields Capital Management.

“While Pitch the Perfect Investment might appear to be written for the equity investor, it also provides the credit or distressed debt investor with critical insights to gain an edge – especially through the authors’ discussion of risk and uncertainty. In the credit markets, finding mispriced investments with an asymmetrical return is extremely valuable. Sonkin and Johnson provide a rigorous framework to properly identify and…

I read an interesting article about a Swedish hedge fund that invests in healthcare stocks and has an advisory board comprised of doctors. Does this provide them with an informational advantage? Perhaps but there probably are not enough datapoints to make the determination. Click here to read the article: Hedge Fund Sees 21% Returns on Advice From Nobel…

This video explains the differences between Steven Spielberg’s movie Jurassic Park released in 1993 and Jurassic World which was released in 2015.  What does this have to do with investing? The video explains how a story can trigger human emotions and make or break a movie.  A pitch is no different.  Stay tuned for more on story…

This is a very interesting article from Bloomberg about using wrist sensors to monitor trader’s physiology: Wall Street’s Next Frontier Is Hacking Into Emotions of Traders A stock is efficiently priced when it fully reflects all available information. This means that relevant information is disseminated, processed…