While the headlines might indicate the algorithmic apocalypse is upon us, and that robots will be directing investment allocation decisions, the reality at present is far different. “Rules-based” or “systematic” fund managers as opposed to Discretionary Managers are only a small percentage of the active management mix, a new report from AQR Capital Management asserts. In fact, the issue of systematic funds “taking over” human, discretionary stock picking shouldn’t be considered from an either / or standpoint. When considering correlation and portfolio balance, the issue it co-integration, not exclusion, the report says. [dalio] In 2010, Felix Salmon and Jon Stokes…
AQR: Computers Don’t Replace Human Stock Pickers, They Augment Them
Mark Melin
Mark Melin is an alternative investment practitioner whose specialty is recognizing the impact of beta market environment on a technical trading strategy. A portfolio and industry consultant, wrote or edited three books including High Performance Managed Futures (Wiley 2010) and The Chicago Board of Trade’s Handbook of Futures and Options (McGraw-Hill 2008) and taught a course at Northwestern University's executive education program.