What is Quantamental Investing?
The world is awash in data like never before. From a person’s morning Uber ride and favorite coffee spot, to the emails sent from their office—all these activities create massive amounts of data, but also behavioral and investment insights.
Warren Buffett’s investment style exemplifies the fundamental approach: “Which companies offer the best returns?”
On the other hand, hedge fund manager James Simons of Renaissance Technologies is a notable example of the quantitative approach: “What is the best way to predict returns?”
Both techniques have one thing in common—they seek excess return from the marketplace, or what is known as “Alpha”.
Quantamental: Combining Quantitative & Fundamental
Today’s infographic from GoldSpot Discoveries outlines quantamental investing as the blending of these two styles, human insight with computer power.
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