Quantitative and fundamental approaches to investing are tried and tested. Both styles offer many strengths, but both have weaknesses too. We believe there is a way to combine both approaches into a single ‘quantamental’ investing style that uses the strengths of one to offset the weaknesses of the other, thus offering the best of both worlds.
The world is facing an unprecedented explosion of information. On any one day, 2.5 quintillion (1 quintillion = 1 billion billion) bytes of data are produced, with a staggering 90% of all data available in the world having being generated in just the last two years.
As such, it’s critical that any investment approach incorporates both quantitative and fundamental inputs to capture and process an ever-growing influx of data and thereby gain insights that might otherwise be missed.
‘Quantamental’ investing blends the objectivity of quantitative modelling with the creativity and experience-based judgment associated with fundamental investing, drawing upon aspects of quantitative finance, data science and deep fundamental analysis to achieve the best of both worlds.
Blending findings from the two distinct investing styles can produce more meaningful investment insights that can be applied consistently, efficiently and at scale.
Click below to download our Quantamental Investing strategy paper, where we detail the relative merits and drawbacks of both quantitative and fundamental investing, why a quantamental approach is important and how it works in practice: