In July and August of 2007, much was written in the popular press about the seemingly universal travails of quantitative investment strategies. While certain quantitative strategies did indeed face significant performance challenges during the summer’s market dislocation, it seems that to a large degree all quantitative firms were incorrectly tarred with the same brush.

This is understandable, to some extent, since quantitative money management is an esoteric field, subject to all-encompassing labels such as “trading systems” and “black boxes.” This paper offers perspectives from BNY Mellon Asset Management on how and why quantitative strategies differ in substantive ways, and on our approach to quantitative management. We think it is important to add some balance and facts to the stories widely disseminated in the popular media, and hope it will serve as a starting point for investors trying to understand the market’s gyrations of summer 2007.

For more information or a hard copy please contact, please contact David Zigas at BNY Mellon Asset Management at 617 248-6202.

The preceding information is based upon the analysis of historical performance of various asset classes and assumptions with respect to future economic conditions. Past performance is not an indication of future results. This information is not intended to provide specific advice, recommendations or projected returns of any particular MAM product.