Quantitative strategies can serve as a 'canary in the coal mine' for market dislocations because mispricings, if real, will show up first in factor-based portfolios before they manifest in obvious ways; O'Shaughnessy observed tiny steel companies appearing in growth portfolios circa 2004-2005, presaging the China commodity boom months before it became public.
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Jim O'ShaughnessyEvidence Quote
“One of my theories is that quant also can be the canary in the coal mine.”
Created: 8/12/2026, 5:59:18 PM
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