New surveys on August quant meltdown: Investors have learned a lesson. But have managers?
May 28th, 2008 | Filed under: Hedge Fund Industry Trends“We essentially have 10,000 Ph.D.s looking at the same data.”
That’s how Vadim Zlotnikov, CIO for growth equities at AllianceBernstein described the world of quant funds to the Annual Meeting of the CFA Institute last week in Vancouver. Zlotnikov was talking about the findings of a new paper by the Research Foundation of the CFA Institute based on a survey of asset managers, consultants and investors.
A press release announcing the study confirms what is now commonly believed, that August’s mayhem was mainly the result of quant hedge funds yelling “Fire!” and running for the exits (see related posting).
Larry Siegel, the Director of the Research Foundation of the CFA Institute (see previous guest posting), points out the supreme irony of this development:
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