Key Themes From Latest Hedge Fund Letters

2020-09-07T13:06:02+00:00September 4th, 2020|Hedge Funds, Quantamental|

Hedge fund manager letters are a great source of investing wisdom and market intelligence. In order to better understand the meta game of markets, we analyzed a sample of nearly 200 first and second quarter hedge fund letters using natural language processing (NLP) tools in Python. These funds covered a wide variety of strategies, but all had significant exposure to equity markets. In this piece I highlight the key themes of these letters, along with how sentiment has shifted as the pandemic has run its course, and the stock market […]

Options Trading Strategies For Quantamental Alpha

2019-09-02T17:19:26+00:00August 20th, 2019|Earnings Derivatives, Indexes, Quantamental|

“Fundamental” analysis and “quantitative” analysis used to be separate.  Fundamental analysts read 10-Ks, built 3 statement models, and did channel checks,  leading a to a final qualitative buy or sell decision.  In contrast, quantitative analysts or “quants” built algorithms to scour mountains of market data for hidden signals on which to make ultra fast buy/sell decisions.  

Typically firms specialized in either fundamental analysis or quantitative analysis, but not both.   Larger multi-strategy firms might have both fundamental and quantitative strategies, but their analysts were likely to be […]

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