The biggest and fasting growing trend in investing is the increasing use of Quant (Quantitive) Funds. As it stands somewhere between 16-25% of current trade volume is made up of quant funds. Quant funds are a product of the growing trend of quantitive analysis. The same technology that is defeating world class chess champions, and propelling self driven cars is slow becoming a dominant force in the financial world as well.


Quantitive analysis is a form of analysis based on mathematical measurements, calculations, statistical modeling and research. It's aim is to use the data and the statistics to gain an objective understanding and predictably to the behavior of events, markets, companies, financial instruments, etc. Computer based models are designed and then used to determine the attractiveness of an investment.

The early progenitors of quantitive analysis and quant funds are often referred to as "quants" themselves. Even with their growing popularity quantitive funds still face skepticism. No one really understands how their algorithms work and thus the process is sometimes referred to as "Black Box". Not all investors are fond of the mystery behind quant funds.

Conversely actively managed quant funds are beginning to consistently outperform their counterparts. With a data driven, testable, and easily reviewable as to the errors approach, quant funds are attracting more and more investor dollars.This in turn leads to more development of the technology and methodology behind quantitive analysis, hence making it more effective and attracting eve more investor dollars.

Late 19th - early 20th century French mathematician Louis Bachelier is credited as the early pioneer for quant analysis and funds. In his Ph.D. thesis titled "The Theory of Speculation" Bachlier makes use of statistical analysis to study and understand stock price fluctuations. As with most pioneering genius, Bachelier's ideas were initially met with skepticism and scrutiny. Decades later his work would be properly recognized.

The financial crash in the 1930's led two Columbia professors - Benjamin Graham and David Dodd to publish a book titled "Security Analysis". The placed an impetus on developing a new investing strategy that was more disciplined in its framework. This approach focused on the analyzing a company's financial statements and comparing it's market value against it's intrinsic value. It would lay the foundation for what is now know as "value investing". As the technology developed with the theory, more investors and academia jumped on board.

The earliest versions of activity managed quant funds were developed and launched in the first half of the 1980's. Since then software has rapidly evolved to suit the purposes of gathering, analysis, and making predictions based on the data. Ahead of the 2008 market crash, quant funds began to exhibit strange behavior. As if they had predicted the crash a year before it happened, quantitive funds across the board began entering into sell positions. While some viewed this as erratic behavior and felt cause for concern, others saw the true potential in the quantitive analysis process, and since then quant funds have more than tripled in market share.

PayPath
Follow Us on

Airbnb is a great option while traveling, but you should protect yourself from damage charges from unscrupulous hosts.

Airbnb offers an affordable option for people looking to be more comfortable as they travel.

However, there are downsides to staying in a host's home rather than a hotel. Whereas hotels are designed for constant streams of visitors and often have furniture built to last, at an Airbnb, you may be staying on old or cheap furniture that a host is using in order to maximize their profits.

And while most reputable hotels will have regular room inspections from staff to check for any wear and tear, Airbnb damage disputes are oftentimes he said, she said situations. If you are in an Airbnb and something breaks, there are a few steps you should take in order to ensure that you are not on the hook for damages out of your control.

Keep reading Show less

What Are NFTs?

Art Installation N°1 by Carlos Marcial. Rhett Dashwood / YouTube

If you're keeping tabs on the art and tech worlds, you've probably been hearing whispers about "NFTs" for the past month. Just over the past week they've entered the mainstream lexicon.

Twitter founder Jack Dorsey made the news for selling his first ever tweet. The app has been teasing paid subscription models and newsletter-like features, but tweets for sale is "the next frontier."

The 2006 tweet went up for auction as an NFT, and the current bid is $2.5 Million. But what does it mean to own that? Why would anyone want to? And what even is an NFT?

Keep reading Show less

Long gone are the days when the majority of Americans dreamed about owning a home with a white picket fence.

The traditional American Dream may be on its deathbed, but that doesn't mean a core component of the vision can't survive. It simply takes a diverse perspective. People can still believe they can attain their own vision of success in society with hard work, knowledge, and risk-taking. Investing in today's American Dream may literally mean investing money in our modern economy, starting with our infrastructure.

Real estate investing in particular is a lucrative method that can boost income and secure a better financial future for many. There's always risk involved, but the payoffs can far outweigh the uncertainty. Selecting solid financial investments is about confidence and competence. If you're looking for some advice on this kind of investment, here are a few savvy tips for new real estate investors.

Stick To a Specific Strategy or Niche

Real estate is a challenging sphere of the business world, one that requires several key skills: groundwork knowledge, networking, perseverance, and organization. True knowledge of the real estate market will come with time and experience, but it's a smart idea to select one area of the market and stick to it. This is the best way to attain in-depth familiarity with your specific niche.

First, choose a geographical area close by and then a niche strategy within it, such as house flips, rental rehabs, or residential or commercial properties. By doing so, you can become aware of current inner working conditions in the market and you'll have a better idea of how these trends may change in the future.

Be Vigilant About Viable Financing Options

While it takes money to make money, you don't have to use all your own money. A common misconception about real estate investing is that you must be wealthy to start off. This isn't straight fact, however. A majority of people can test the waters of real estate investing without a lot of initial cash in their pocket.

Aside from traditional financing options from banks and institutions, private lending options can be worthy solutions. Hard money lenders are popular, reasonable choices, and they tend to have fewer qualification requirements upfront. However, be sure to strategically choose a hard money lender to find the best possible fit.

Master the Art of Finding Good Deals

There may be hundreds of thousands of available properties for sale on the current market, but the bulk of them will never amount to the final money-making result you desire. Another great tip for new real estate investors is to use good math to estimate profit. Taking risks is part of the process, but you have the ability to analyze properties and use networking sources to find the greatest deal. You can't win every deal, but you can steadily work towards a thriving financial future.