The U.S. Stock Market Belongs to Bots
- Widening gap between quants, fundamental long-short managers
- Systematic strategies now fastest growing investment category
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That money you see sloshing around in the U.S. stock market? It belongs to the robots.
At least, that’s the picture emerging from a growing divergence between quantitative funds and discretionary managers. Systematic strategies have barely budged from near-record participation in U.S. stocks. Meanwhile, fundamental equity long-short managers can’t afford to be anything but picky, considering the market’s narrow leadership.