Portfolioist: Gaming the Numbers

My latest piece at Portfolioist is available here.  A taste:

For investors, the lessons to be gained here relate to diversification, a carefully delineated and bounded process, clear execution rules, and stick-to-itiveness over the long haul.  This doesn’t mean that quants should control everything.  Old school analysis and judgment still matter, perhaps more than ever since the pile of available data has gotten so large.  But it does mean that our conclusions need to be consistent with and supported by the data, no matter how bizarre the numbers or how long the streak.

Enjoy.

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