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There's a plot where they differentiate "quant hedge funds" from "other hedge funds". How are they defining this? (To what extent is this just a matter of qua
by jessriedel 9y ago
There's a plot where they differentiate "quant hedge funds" from "other hedge funds". How are they defining this? (To what extent is this just a matter of quant being sexy and more firms describing themselves as quant?)
- kobeya 9y agoWhether a computer does the analysis.
- moxious 9y agoIt's about whether the computer does the analysis or not, but that's just a stand-in. The real difference is whether and idea or investment strategy can be systematized to the point where it's automated. That implies that there's no emotion or personal bias in most individual trades. Contrast that to humans doing the picking where there's a fair amount of "lick the finger and hold it up to see which way the wind is blowing"
- dsacco 9y agoThe other commenters are correct-ish about "quant" meaning something like, "computers and technology." But for the most part it's now a marketing term. Discretionary/fundamental hedge funds also use data pretty extensively, and they also use trading algorithms. It's largely about technology culture, not simply the way in which trades are chosen (or not, as it were).