Quant Funds Making a Comeback
https://www.ft.com/content/2e28fb42-de8a-40d7-8716-88cb5febe006
i think we are starting a decade where quant funds will rule due to central banks doing QT rather than QE like 2010's.
Trending Content
| +83 | The emotional rollercoaster of trading for HF | 15 | 11m | |
| +32 | Undergrad HF Internships? | 33 | 1d | |
| +30 | Risk VS Volatility | 7 | 19h | |
| +19 | How is PnL calculated for purposes of determining a portfolio manager's bonus? | 7 | 2d | |
| +19 | Advice - IB to Investing (Regret?) | 4 | 4d | |
| +19 | Are distressed HFs still viable? | 12 | 4d | |
| +18 | Does cfa matter? | 6 | 1d | |
| +17 | Why did Citadel hit the dumps in 2008? | 6 | 4h | |
| +17 | Please rate this sub pm deal for me | 9 | 19h | |
| +16 | How Long Before Team Gets Cut | 25 | 1d |
Career Resources
100%
the one thing i'm a bit confused on is the article keeps mentioning "trend-following" by these quant funds. I understand during times of volatility, spreads will get bigger but what do they mean by the trend following? Are they talking about mean reversion strat or something?
H
Trend-following =
Buying rising assets and shorting falling assets
-> u follow the trend
Mean reverting is almost the opposite: if an asset has over/under perform strongly, it may have deviate from its "mean" (various ways of defining it). So u short it if it has overperformed, hoping for a return to its mean (which is under the current market price). U buy it if it has underperformed and therefore trades under its "mean"/fair value
In the mean reverting family y also have pairs trading: u define a pair of 2 assets that are supposed to move together. If there is a divergence in their performance, u buy the underperforming one and short the overperforming one, hoping the spread will converge back to 0.
Yes but the use of « trend follower » in this article still make no sense.
It’s like they thought Quant HF = Trend Follower HF
Libero assumenda voluptatem ducimus incidunt. Beatae harum earum sit. In rerum quisquam unde consequuntur excepturi possimus.
Alias et tenetur minus eligendi ipsam tempore autem vel. Consectetur qui est dolorum qui rerum nisi. Expedita voluptas dolorum voluptate qui consectetur eaque perspiciatis. Ducimus qui iure repellendus nam quod et.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...