Video: The Devil Is in the Details

Man Group’s 2016 Unconventional Views video series is designed to present original thoughts and insights that challenge the consensus view. The videos feature leading executives from the firm’s four investment engines, Man AHL, Man GLG, Man FRM and Man Numeric, explaining their views on various investment themes.

The conventional thinking is that all quantitative managers are the same – that they analyze the same data, read the same academic research, and use the same concepts to identify attractive stocks. In this video, Robert Furdak, Co-Chief Investment Officer at Man Numeric, challenges this view by arguing that ‘the devil is in the details’ and that the distinctions in how quantitative managers construct and combine models to generate trading signals are significant. To illustrate this, he looks at existing value models that most people might think would be highly correlated to show that returns become progressively better (and volatility decreases) as the value models become more evolved.

Past performance is not indicative of future results. The value of an investment and any income derived from it can go down as well as up and investors may not get back their original amount invested. Opinions expressed are those of the author, may not be shared by all personnel of Man Group plc (‘Man’) and are subject to change without notice.

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