Quant Investing Is the Engine, Not the Vehicle
💡 The Core Idea Quantitative investing is a powerful engine — but it’s not the vehicle . If you want to build wealth that safely outpaces inflation , you need a robust, behaviourally sound vehicle — a strategy designed for human resilience, into which the quant engine can be integrated. ⚙️ The Quant Promise — and Its Reality Quant finance uses math to find patterns, capture “factors” (like value, momentum, and quality), and remove emotion. It’s disciplined, data-driven, and scalable. But when you zoom out to a lifetime of investing, pure quant breaks down — for three key reasons. 1️ ⃣ Model Risk — The Black Swan Problem Quant models learn from the past. They work… until the world changes. Think 2007’s “Quant Quake.” Think 2020’s COVID crash. Models that worked perfectly for years suddenly collapsed. 📉 They explain history — but can’t predict new history. 2️ ⃣ Alpha Decay — The Vanishing Edge Every quant “edge” attracts attenti...