Navigating Factor Crowding in Quantitative Investing

This presentation explores 'Factor Crowding' in investment strategies, starting with its key challenges and objectives. It dives into a conceptual framework comparing traditional and second-degree alpha research. Key challenges, such as synchronized trading and arbitrage opportunities, are analyzed. Risk management strategies, including risk cycle assessment and crash insurance, are discussed. Finally, it addresses future frameworks, tackling market non-stationarity, uncertainty, and...