2025/03/10 – In-Person and On-Line
Why people under allocate to quantitative strategies (and why that’s ok)
Seminar by Matthew Yeates
The LQG is very grateful to our hosts of this seminar.
Why people under allocate to quantitative strategies (and why that’s ok)
Within investment management the exercise of portfolio construction is rarely a model of pure risk and return optimisation, despite the simplicity of models that imply otherwise. From a behavioural perspective, research shows that investors exhibit an aversion to complexity. If we consider the world of quantitative strategies, perceptions of complexity could be central to understanding the under allocation to strategies that are otherwise optimal within a purely financial framework. This presentation will put forward a simple specification for a model to include these factors. It will discuss the applications of this in practice to investment processes and teams, as well as how the market environment can make this particularly relevant when conditions get “stormy”!
The paper on which this talk will be based is available here.
About the Speaker
Matthew Yeates
Deputy Chief Investment Officer
7IM
Matthew is the Deputy CIO at 7IM, with a background in multi asset portfolio management, alternative assets, quantitative and risk research. In 2023 and 2025 he was named one of EQD magazine’s 25 global leaders in systematic investing, was named in the Forbe’s 30 under 30 list for 2020 and was the youngest of Financial New’s rising stars of asset management in 2017.
In the past it is believed he demonstrated some skill as a windsurfer.
