Monday, April 20, 2009

Must Read - Bill Miller "Value Funds Bury Quants"

This is a must read from Bloomberg News, "Bill Miller Not Dead Yet as Value Funds Bury Quants"

Companies with the most debt and lowest returns on assets are turning the biggest six week rally in stocks since 1938 into a bloodbath for last year’s best performing trading strategy.

Investors in so called quantitative momentum funds -- which speculate that the worst stocks in the past 12 months will continue to decline -- have become this year’s biggest losers after banks and companies that rely on consumer spending surged.

Quant momentum managers may have tumbled 27 percent this month in the U.S., the most since at least 1993, while those in Europe may have lost 20 percent in March and 24 percent in April, according to data compiled by JPMorgan Chase & Co.....Complete Story


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