I remember learning about the early days of Renaissance and hearing how they couldn't help interfering at first, but they gradually grew to trust the model more and more.
The fall of LTCM played into this mentality heavily, and it must have seemed like they were cheating death when they finally began to take off. The rest is history.
The investment used to be both art and science but looks these guys have figured out a way to make it only science but at what cost in the long run. Is this all based on models, or do they have luck on their side? As no model is always right especially in the area of investment which involves human emotions. It has to be more than models to pull this level of performance off.
I remember learning about the early days of Renaissance and hearing how they couldn't help interfering at first, but they gradually grew to trust the model more and more.
The fall of LTCM played into this mentality heavily, and it must have seemed like they were cheating death when they finally began to take off. The rest is history.
The investment used to be both art and science but looks these guys have figured out a way to make it only science but at what cost in the long run. Is this all based on models, or do they have luck on their side? As no model is always right especially in the area of investment which involves human emotions. It has to be more than models to pull this level of performance off.
I have no expertise in this area. Are they going to end-up like LTCM eventually in the book "When Genius Failed "https://www.amazon.com/When-Genius-Failed-Long-Term-Management/dp/0375758259/ref=sr_1_1?crid=3HCY0ABFH6LC7&keywords=when+genius+failed&qid=1695070498&sprefix=when+genius+failed%2Caps%2C72&sr=8-1"