Masters in Business Andrew Slimmon on Quantitative Factors in Markets
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Feb 22, 2024 Explore Andrew Slimmon's journey from fundamental analysis to quantitative strategies in portfolio management. Learn about market trends post-March lows, applied investing strategies, and factors affecting stock price returns. Discover insights on market behaviors, fiscal stimulus impact, and evolution of products in investment management.
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Client Expectations Then vs. Now
- In the late 90s, clients unrealistically demanded 15-20% returns with minimal risk.
- This contrasts sharply with today's investors who favor the stability of money markets.
True Risk Tolerance
- Risk tolerance questionnaires often reflect recent market performance, not true risk aversion.
- Actual investor behavior during drawdowns reveals their genuine risk tolerance.
Recency Bias
- Investors tend to chase past performance, leading to buying high and selling low.
- Stocks, however, only care about future performance, creating a disconnect.