The Strategies & Risks In Quant Trading | Mike Harris

In this episode of Forward Guidance, Jack Farley interviews Michael Harris, President at Quest Partners, a quantitative-driven investment fund. Harris discusses his background in quantitative investing, including his experience as an allocator to quant funds and CTAs at Morgan Stanley, a futures options and currencies broker, and his time at Campbell & Company. He explains Quest Partners' focus on short-term momentum trading and delivering positive skew or convexity in their return profile, particularly during times of market volatility. Harris also touches on the evolution of CTAs, the risks of crowded trades in equity statistical arbitrage, and the rise of multi-strategy hedge funds. The conversation further explores the explosion of private investments, the potential risks associated with liquidity and valuation lags, and the use of AI in trading strategies. Harris shares his macro views, highlighting potential sources of volatility in the market, including geopolitical conflicts, monetary policy, and the upcoming election.