F&C highlights use of "black box" strategies for fundamental investors

The term black box covers quantitative investment strategies, structured products and sophisticated risk management tools. These are based on technical analysis of stock and market price movements, though Kaketsis said that the strategies used are nothing new and that the extent to which such techniques can influence markets on a particular day has increased dramatically in recent years. Kaketsis explained that enhanced index funds have been a rapidly growing segment of the institutional investment space, and that other sophisticated quant strategies have become more common place, espe...