Alpha generation continues to persist in growth stocks, Meaning pain for value investors

Quantitative fund management is gathering momentum through 2018 – more specifically major funds are risking greater amounts of capital in quant-based strategies globally, the results of which, however, are yet to be realised. While only recently, quantitative hedge fund titan, AQR Capital, announced they will be launching their first quantitative bond fund, ¹ close to two weeks earlier BlackRock unveiled a push towards quant investing – catalysed by the acquisition of quant giant SAE, a $100bn computer-powered investment business. ²

With swathes of investors allocating their precious investment dollars in passive vehicles such as ETFs, active investment funds are seeking more efficient,...