 Good day, fellow investors. In the past, I have received a lot of questions about quant strategies, quant investing strategies, and algo traders, hedge funds that use algorithms to trade to gain on arbitrage. And I even received now an offer from a hedge fund arbitrage trader that offers, that promises 4.5% monthly from such arbitrage trading and then wanted me with my channel to represent them to make marketing, of course. I declined that because I'm not that kind of investor. I'm a long-term business investor, not an algo trader, and no matter the fees they would like to offer me, I don't care about that. However, I also found an article on Bloomberg discussing how quants are not having a good time and I want to give my opinion on quants, algos, and that kind of trading. So, Bloomberg article from Bloomberg markets just how quants are facing a crisis of confidence. So, October compounded miserable year for many quant strategies and signs of retail cash leaving funds as institutionals stay put. Okay. So, funds are leaving AQR, one quant fund that oversees 226 billion has seen significant outflows in the last few months. And the fund was especially hit in October as their returns are not that positive and their strategy is not delivering. Here you can see that the returns weren't that positive over the last three, four years. We have had some positive months, then some very negative months, but mostly are negative. So, quants aren't really outperforming the market, aren't really even reaching positive returns. And that's very, very worrying. Because there is no free lunch when it comes to finance economics. You cannot, okay, you cannot set up something and then, okay, this works, this gives me 2% per month and then just let it run. That will be, there will be some other quant that will understand, okay, you are doing that. So, I'll make 2% on top of you. And that is so much competition. So, when there is so much competition, like quants have been, let's say, trending a few years back, now not that much, but a year or two years back were very trendy. When something is very trendy, when it comes to investing, usually the returns are negative. And that is what's been going on. Further, as I have been saying, there is no free lunch in economics. Either you work hard, you look for those investments, you take advantage of other people's irrationalities by using common investing sense, and then you can gain something. But you are gaining based on your work. Gaining something based on just taking advantage of what's going on in the world, thinking of doing arbitrage or quantified trading is something that very, very smart people have tried to do in the past, but there is no Warren Buffett of quants. There is no Warren Buffett of algos, because if it would have been possible in the last 50 years, there would be now someone on the top, richest top 5, 10 positions that's a pure quant or algo trader. There isn't such a person. So there we are really talking about luck and non-sustainability. As an example, those who are younger will not remember this, but in 1994 geniuses have set up long-term capital management. Their goal was to gather the nickels around the world by trading around risk and simply making great profits without taking any risks. And that worked extremely well as $1 became $4 in just four years. So it was an extremely positive trading strategy until the Russians said, we're not going to pay. And that was a fat-tony moment for the Nobel Prize winners. The long-term capital management fund returned, went to zero, and a lot of people lost their money because not thinking like it is the case with index funds, it's not the way to invest. Thank you for watching. Just wanted to share my opinion about this with you today. Please comment, ask questions. I always love your comments. Thank you and I'll see you in the next video.