Contributed by Andy Chakraborty, Portfolio Manager, Duo Reges Capital Management, Inc.
Duo Reges believes that the prevalence of model-based trading requires investors to create “model aware” investment strategies. Further return potential lies in actively countering these models (which includes any statistical or rule-based investment approach, from AI to indexing), not simply when they fail, but even when they succeed. Human action, especially regulatory effects, create a systemic hole in most models that investors can use to seek sustainable value.
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