Why natural evolution is the future of investment management

Traditional quant strategies tend to be static. Smart portfolio managers or data scientists come up with a recipe to beat the markets, and then automate their thinking into a set of rules-based algorithms. These static quant strategies work until they don't. This problem becomes acute when markets change rapidly, as they are doing today, says Adrian de-Valois Franklin, CEO, Castle Ridge Asset Management. But the natural world offers us a different approach, that of evolution through random mutation. This is Darwin's theory of natural selection, and it underpins our understanding of all l...