Quant fund investment and financial near 1 trillion under management
Understand how quant funds are changing how we see the future of investing and taking financial advise.
Here are some highlighted comments about this article from Financial Times:
They speak of how algos make the markets complex and fragile
More unsophisticated (dumb money or even retail money) flows into electric traded funds without understanding underlying investment nor know the high risk. These are put into mainstream ETF funds like Vanguard or Blackrock. Could this be the next 2008 waiting to blow up?
Examples of Two Sigma is used to show short time to get to 50 billion asset under management like Renaissance Technology or DE Shaw.
One French was quoted as doubling their staff within 5 years while other old investment banks are shedding traditional trading roles. Remember how Goldman Sachs is considered now a technology company vs an investment bank with 30+% of staff as software engineers.
Quoting directly from Financial Times results in:
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