Deutsche Bank notes that whereas discretionary investors have been cutting equity positioning as growth has slowed…
… systematic strategy allocations – i.e., quants (sometimes also called “robots”) and the like – have been marching higher. To evaluate how various investor classes have been approaching markets, Thatte divides his suite of equity positioning and flows indicators into those that track discretionary investors like long-short hedge funds, real money mutual funds and retail investors versus systematic strategy allocations for Vol Control, CTA and Risk Parity funds.
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David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal.
He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.
