The term “black box” investing has often been applied to quantitative fund management, though it is seen by its practitioners as a somewhat pejorative description. Whatever black boxes they have at BGI, they certainly seem to work.
Traditional active managers use the phrase while looking down their noses at quant fund management and its reliance on technology. They feel it lacks the panache of stock-picking.
Yet the performance of the old-school investors in recent years has not been anything to shout about.
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