Evaluating Quantitative Strategies in Active Equity Investing

As a portfolio manager at an active equity investment firm, you have been tasked with evaluating different quantitative strategies for stock selection and portfolio construction. One of your colleagues, who specializes in quantitative methods, suggests employing a screening approach based on specific financial ratios and historical stock performance metrics. In the context of active equity investing, discuss the advantages and challenges of using quantitative strategies in managing equity portfolios.

In your response, be sure to cover aspects such as the rationale behind quantitative strategies, the types of data used, potential biases, and how these strategies can be integrated with qualitative analysis to enhance decision-making. Support your analysis with relevant examples where appropriate.