Quant funds aren’t invincible.


Despite all of the new and interesting sources of data now available to them, as well as their heavy spending on cutting-edge technology and formidable engineering talent, quant funds have reminded the investing world this year that they too are composed of mere mortals. Moreover, with volatility low, strategies that are run by some investors who lack “quant roots” and the potential of algo commoditization always looming, the question being asked by financial journalists and former chief risk officers is: “Are we heading to a repeat of the 2007 quant meltdown?”