Friday links: quant crowding

24Aug07

Justin Lahart at WSJ.com writes “The risks to quantitative investing may be rising. Even if they don’t share the same statistical models, quant funds share similar approaches to the market.”

Justin Fox at the Curious Capitalist has an in-depth post on the “Great Quant Meltdown of 2007” and reminds us that “..(J)ust because a strategy works most of the time doesn’t mean it’s going to work all the time.”

Gwen Robinson at FT Alphaville explores the, what seems to be, limited fallout from these hedge fund ‘episodes.’

Mark DeCambre at TheStreet.com on the nature of the current crisis on hedge funds.

Jeff Matthews on the effect the quant fund meltdown had on one stock.

Interesting timing…Vanguard is getting into the market neutral fund business, albeit for big money investors. (via Morningstar.com)

Is this particular “Minsky Moment” over? (via FT Alphaville)

Is the current credit crunch going to aid VCs and their technology company IPOs? (via DealBook)

Economist.com on how the current crisis affected (or not) Asia and Latin America.

Daniel Gross at Newsweek.com on how the subprime mortgage mess is going to hurt Wall Streeters where it counts…in the pocketbook.

Barry Ritholtz at the Big Picture passes along some insights from a CDO professional.

Dennis K. Berman at Deal Journal on the showdown between Home Depot (HD) and private equity.

Greg Newton at NakedShorts with good “advice” on how to select a hedge fund of fund manager.

Howard Lindzon asks “Do Wall Street analysts matter?”

Adam Warner at the Daily Options Report on how to interpret the market’s action relative to the VIX’s position.

Bespoke Investment Group with a graph of the current spike in high yield credit spreads and a notable equity sentiment indicator.

VIX and More has an overview of recent sector returns.

Peter Eavis at CNNMoney.com with five steps to revive Countrywide Financial (CFC).

Felix Salmon at Market Movers believes the Countrywide deal is a “coup” for Bank of America CEO Ken Lewis.

John Carney at DealBreaker.com with the cons (and pros) of the latest edition of Portfolio magazine.

Om Malik at GigaOm.com suggests ticker changes for ten more technology firms.

Have we missed an interesting post? Then feel free to drop Abnormal Returns a line.

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