BOSTON ( TheStreet) -- What's the best way to excise emotions -- fear, greed -- when choosing to buy or sell stocks or other securities? For starters, get rid of humans and let computers take over.That type of investing, used by so-called quantitative hedge funds, received a black eye after Goldman Sachs ( GS) said it was shuttering its once-esteemed Global Alpha quantitative hedge fund for poor performance.
Lender Processing Services ( LPS), the second-largest fund holding at 0.7%, is the leading mortgage processor with 50% of the market for residential mortgages by dollar volume. Most of the nation's biggest banks with mortgage divisions are its customers. Its services cover virtually every stage of the mortgage lending process, from origination through default and foreclosure. Its shares are down 45% this year, and 50% over the past 12 months, giving it a market value of $1.4 billion. It has an average annual loss of 22% over the past three years.
Cash America International ( CSH) owns nearly 450 pawnshops under various names in the U.S. and Europe. The stores lend money on the security of pledged goods, which makes it look like a good play in a recession. Its shares are up 65% this year, and 88% over the past 12 months, giving it a market value of $1.8 billion. Its shares have an average annual return of 10% over five years.