Quants Dominate The Market; Unexpectedly They Are Also Badly Underperforming It
Two days ago, JPM's head quant made a striking observation: "Passive and Quantitative investors now account for ~60% of equity assets (vs. less than 30% a decade ago). We estimate that only ~10% of trading volumes originates from fundamental discretionary traders." In short, markets are now "a quant's world", with carbon-based traders looking like a slow anachronism from a bygone era.