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It does until it doesnt. There are very few quant funds that have figured out how to navigate a rapidly changing economic environment. The problem with quant is that it is backward looking. When the market changes most quantitative funds do not have a good method of accounting for the change. They do not properly account for conditioning information and they end up completely hammered.

I am confident that there are people who have at least partially figured out how to invest this way, but i believe it is very, very few. Like less than 10 funds/people on earth.




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