Lotus AMC's quant fund
Printed From: The Equity Desk
Category: Market Strategies
Forum Name: Investment resources - The Knowledge Buzz
Forum Discription: Share thoughts and information about where you get all the company/investing informtaion from. Talk about websites, books, news papers, journals TV shows that others could benefit from.
URL: http://www.theequitydesk.com/forum/forum_posts.asp?TID=1309
Printed Date: 03/May/2025 at 6:20am
Topic: Lotus AMC's quant fund
Posted By: shivkumar
Subject: Lotus AMC's quant fund
Date Posted: 25/Oct/2007 at 6:28pm
| Lotus AMC has launched India's first quant fund. Can anyone one say how such a thing works in India. Markets are volatile, but the AMC says it will concentrate by holding positions in just 11 companies and trade using mathematical models. |
Replies:
Posted By: kulman
Date Posted: 25/Oct/2007 at 6:32pm
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Hmm....very very very interesting to say the least.
As I was a dumb student of mathematics in school+college, I would keep myself away.
------------- Life can only be understood backwards—but it must be lived forwards |
Posted By: basant
Date Posted: 25/Oct/2007 at 6:49pm
Hmmm.. TED Xi now Lotus XI  ------------- 'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in |
Posted By: FundManager
Date Posted: 25/Oct/2007 at 7:57pm
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* Shivkumar--- how it works is very simple... based on filters designed to shortlist only large & liquid stocks with some price history, the model chooses 11 stocks based on mathematical parameters broadly designed to identify momentum.
the assumption is since these stocks are amongst the largest in the country and the most liquid, price discovery is efficient and so is information pertaining to them. so all the information and value is reflected in the momentum and if this momentum can be identified at the right time, then it should be easy to generate some outperformance.
Such models can be backtested to see whether they work or not, and invested in on the assumption that what seems to have worked in the past will work in the future.
*Kulman-- you dont need to be a pilot to travel by air... :)
*Basant--much as i tried, i couldnt get TED XI.. could you please tell?
Cheers, guys
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Posted By: kulman
Date Posted: 25/Oct/2007 at 8:11pm
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Kulman-- you dont need to be a pilot to travel by air... :)
--------------------------------------------------------
FundManager....welcome to TED. Please introduce yourself here: http://www.theequitydesk.com/forum/forum_posts.asp?TID=17&PN=50 - http://www.theequitydesk.com/forum/forum_posts.asp?TID=17&PN=50
As regards flying you are right. Well I do fly as a passenger seldomly. A bit afraid of dizzying heights though! However I would never fly a plane run by auto-pilot. (read: quant models)
------------- Life can only be understood backwards—but it must be lived forwards |
Posted By: basant
Date Posted: 25/Oct/2007 at 8:19pm
Hi! Nice to see you here with that explanation. This is a http://www.theequitydesk.com/forum/forum_posts.asp?TID=429&FID=41&PR=3 - link to the TED Xi.
------------- 'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in |
Posted By: FundManager
Date Posted: 25/Oct/2007 at 8:36pm
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*Kulman-- Aaah, the power of not knowing... most planes fly by autopilot... :) The pilots just take off and land... the rest of the flying is AP... in this case, the research that would go into developing the model would be take off stage...
*Basant-- looks like really hot picks... nt much of a equity guy myself, more inclined towards the math that drives it, though...:)
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Posted By: johnnybravo
Date Posted: 25/Oct/2007 at 8:42pm
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If autopilots were so experts, pilots wouldn't be the most paid professionals! Even the analogy holds true here. |
Posted By: FundManager
Date Posted: 25/Oct/2007 at 8:55pm
Agree with you completely! However, Auto Pilot does have its space and utility in flying..
this is not meant to be a replacement... its just another option... which may have its space and utility in investments...
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Posted By: kulman
Date Posted: 25/Oct/2007 at 9:59pm
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Thanks FundManager for that info. I am ignorant about too many simple things.
Having said that, something tells me that it's not how high one flies but how safe one lands ....that is crucial for health & wealth.
------------- Life can only be understood backwards—but it must be lived forwards |
Posted By: kishanpv
Date Posted: 25/Oct/2007 at 11:26pm
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Mohanji, I had invested in Lotus funds ELSS before joining TED. I was able to beat their 4 months track record by miles (it was in -ve at that time).
Although it has Ajay bagga likes i didnot find the fund figuring out in the top 10 ever since it has started...
my 2 cents
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Posted By: shivkumar
Date Posted: 25/Oct/2007 at 11:30pm
| auto-pilots do not substitute for pilots. anyway higher the airplane goes less the hassle for a pilot. one needs experienced human guidance when the aircraft is closer to the landing strip (ie during take-off and landing) because of convergence issues. more planes are concentrated closest to the landing strip. we can say, auto-pilot is something like an index fund |
Posted By: FundManager
Date Posted: 25/Oct/2007 at 12:00pm
Thanks, Shivkumar... wouldnt have made the point better... as I mentioned earlier, such funds are not meant to be substitutes at all... its just another investment option, which may or may not, find a place in an investors portfolio...
as an asset class, quant funds have been growing in acceptance the world over.. Most investment advisors would provide an allocation for quant strategies in client portfolios as distinct from discretionary funds or index funds....
the biggest positive of such strategies is that they are extensively and rigouously backtested and this may provide an investor with information regarding fund behaviour at NFO stage itself...
there is some material available on the AMC website http://www.lotusindiaamc.com - www.lotusindiaamc.com ... its worth a look...
cheers!
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Posted By: smartcat
Date Posted: 25/Oct/2007 at 12:20pm
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Very quaint.
FundManager, are you the fund manager of this fund?
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Posted By: FundManager
Date Posted: 26/Oct/2007 at 2:04am
| Quant funds dont need a fund manager... and the word is "quant", not quaint...:) though i do agree with te emotion... it is rather quaint as well... |
Posted By: kulman
Date Posted: 26/Oct/2007 at 8:25am
Fresh from the press...
Source: http://economictimes.indiatimes.com/Market_volatility_puts_algorithmic_trading_under_pressure/articleshow/2494007.cms - http://economictimes.indiatimes.com/Market_volatility_puts_algorithmic_trading_under_pressure/articleshow/2494007.cms
------------- Life can only be understood backwards—but it must be lived forwards |
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