This book demonstrates how quantitative country-level investment strategies can be successfully
employed to manage money in international markets. It offers a range of state-of-the-art
quantitative strategies describing their theoretical bases implementation details and
performance in over 70 countries between 1995 and 2015. International diversification has long
been a key to stable investing. However the increased integration and openness of global
financial markets has led to rising correlations between stock market returns in particular
countries driving down the benefits of diversification and increasing the importance of
country selection strategies as part of an investment process. Zaremba and Shemer explain the
efficiency of quantitative investing which captures huge amounts of data of limited scope very
quickly. In the traditional approach this data compilation is an immense undertaking limited
in scope and vulnerable to behavioral errors but this can be overcome with the help of a new
paradigm of quantitative investment at the country level. Quantitative country asset allocation
can be efficiently accomplished by using wealth insights that have been generated in the
academic literature discovering many anomalies and regular patterns in asset prices. Armed
with this information investors and managers can process large amounts of data more
efficiently when deciding to invest in ETFs index funds or futures markets.
