This is a summary of links recently featured on Quantocracy as of Thursday, 03/19/2026. To see our most recent links, visit the Quant Mashup. Read on readers!
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More of the Disease, Faster (What happens when you ask an LLM to find you an edge) [Robot Wealth]This week I discovered the vibe quant movement (or rather, it discovered me). People using LLMs to find trading strategies, validate them, and put them into production. The pitch is seductive: the LLM reads the literature, implements the ideas, backtests them, and you just supervise. I think this approach is going to cost people a lot of money. And worse, its going to prevent them from
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Timing Value vs. Growth: Evidence from 100 Years of Small Value Large Growth Spread [Quantpedia]The goal of our article is to examine the long-term relationship between small value and large growth stocks using more than 100 years of data and test whether the spread between small value and large growth portfolios shows trends that could help investors switch between the two styles. Using the Fama and French 23 and 55 size and book-to-market portfolios, we construct the small value minus
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Diversification Has Been a Huge Drag on TAA Performance for 15+ Years [Allocate Smartly](but that wont always be the case) Over the last 15+ years, diversification (as opposed to market timing) has been a huge drag on Tactical Asset Allocation (TAA) performance, to the tune of 2.1% per year compared to the 60/40 benchmark. That diversification drag has been mostly due to US stock market dominance over almost all other asset classes over that period. TAA must use market
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How to write a tweet that gets over 300k views; and why diversification is probably good [Investment Idiocy]At eight words this is almost certainly* my most viewed and liked tweet ever (although I have nearly 25k followers, so thats 18,000 or so that didn't like it) . Short, pithy, funny; I should retire from my Xmaxxing game right now (just kidding; there are still plenty of gamblers, crypto nuts and MAGA idiots waiting patiently to be educated; and I have a million more dad jokes to inflict on