Hedge Funds

Quants explore behavioral trading using Capuchin monkeys


A quant group whose membership includes scores of hedge fund professionals is exploring an age-old question: Are 1,000 monkeys making 1,000 trades smarter than the average portfolio manager on any given day?

The Quafafew group (short for Quantitative Alliance for Applied Finance, Education and Wisdom) will try to answer that question at a meeting later this summer in San Francisco, when they will probe the results of work done by a Yale professor published under the title "The Evolution of Our Preferences: Evidence from Capuchin-Monkey Trading Behavior."

The discussion of the work by Professor Keith Chen of Yale University