Embrace the Evolution of Quant Equity

Quantitative equity has undergone significant commoditization, impacting its efficacy in systematic investing. Despite this, it has democratized access to systematic strategies through the dissemination of academic insights from the 90s. However, the current performance of quant strategies has not matched historical expectations, partly due to external factors like the rise of intangibles and volatile tech markets that disrupt traditionally effective investment factors. Moreover, the operational realities faced by asset managers, who work within finite investment horizons and specific utility functions, contrast sharply with the assumptions of long-term perspectives prevalent in academic research. This divergence highlights the complexities in applying theoretical models to practical asset management.