Posted
8:55 AM
by Gene
"Idiot savants brought to industrial proportion" have helped screw up the Wall Street casino lately.
We smile at their hubris."It became increasingly transparent that many of the highly sophisticated quant funds employed similar investment approaches and held similar core holdings," Thomson Financial wrote in an analysis of the role of the 25 largest quant funds in the market meltdown. "This resulted in the funds selling similar long stocks and covering similar short positions."Surprise: the casino has a herd mentality. What does one expect of
bulls?