Another Quant bloodbath.. Could it be?

Discussion in 'Wall St. News' started by ang_99, Nov 7, 2007.


    Rumor Mill: Quant Bloodbath, Merrill Exiting Private Equity Investments?
    It was another huge day of losses on the stock market today, and the rumor mill is spinning at full tilt.

    • Shades of August: We’re hearing from a usually knowledgeable source that one of the quant big funds that saw serious losses back in July and August may in trouble again. The specific fund being attached to this rumor is AQR Capital, although last time around we learned that the strategies of all the quants were so closely aligned that where one fund ran into trouble, they all did. Keep in mind that while our source is well-informed he is not directly connected with AQR. AQR did not respond to our request for information.

    First thing that comes to mind is Goldmans Global Equities Opportunity and Global Alpha. Didn't they "inject" a few billion into these funds to prop them up after losing 25-30% in august and july cuz "these things only happen every 100 years or so"

    Should be interesting to see year end performance.
  2. If its on dealbreaker it must be true. They NEVER post anything that's not true.

    :D :D :D
  3. maxpi


    I can just see the explanations in the meetings with the top brass... "Well, uhhh, maybe a couple times per 100 years, I mean who really knows?"

    I think a new quant term is being born right here, right now... the "double black swan"
  4. "unfortunately gentlemen, this is a 20 sigma event..... true, there are no bids, but there is solid support at zero...."
  5. dont


    Nah not a 20 sigma event a 400 sigma event:D
  6. geez, don't you guys realize we only go up from here? you didn't get the memo? mymini and stocktrad3r say we only go north. get in line bitches!
  7. I get all my inside info from Ben Dover.
  8. wow nice indicators, would you be kind enough to provide information on how to set up these indicators
  9. piezoe


    LMFAO :D :D :D
  10. Right article - wrong month. 2/27 was the key market volatility event for this year. We are below that level in yen and I expect word of more HF death from forced carry trade deleveraging w/in days.

    My call - it will be in City of London.
    #10     Nov 11, 2007