Simple quant formulas beat human eye almost...
A meta analysis by Grove et alshowed that simple models beat the experts in 64 of 136 studies, while another 64 cases basically resulted in a tie. A mere eight clearly went to the humans, and in those cases there were indications that the experts had access to more information than was provided to the models.
Based on such wide-ranging observations, Mr. Montier suggested that finance likely suffered from similar problems. In other words, investors might get the best performance from following simple stock screens to the letter, rather than using them as a short list to pick and choose from. The extra intelligence brought to bear on the problem might actually hurt returns.
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