Stable returns on an investment depend on a company’s medium and long-term fundamentals
In quantitative strategies that focus on short-term or even intraday trading, the players are all financial market participants and are all playing zero-sum games. Investors compete on factors including the behaviors of other investors, their sentiments, and the short-term information gaps that exist amongst all investors. These strategies do not always work in the long term and have limited capacity, leading to particularly fierce competition in the short-run.
On the other hand, in quantitative strategies based on medium and long-term fundamental analysis, real economy operators, government regulators, and end customers are all involved in addition to financial market participants. All these participants can benefit from a company’s growth. It is a win-win model in line with the nature of financial markets, through which investors also play a role of allocating societal resources while gaining themselves. These strategies have higher long-term value.