quant fund

(redirected from Quant Funds)

Quant fund

A fund that uses quantitative approaches and computer models to make investment decisions as opposed to qualitative approaches like opinion of fund managers.

Quant Fund

A mutual fund managed by a computer program. Theoretically, a computer program can make investment decisions without emotion or bias; it simply buys and sells the securities according to a pre-determined formula. However, there is no guarantee as to how well designed a quant fund's program is, and it may not be able to adapt its program to changing market conditions. See also: Behavioral finance.

quant fund

A mutual fund having a stock portfolio that is managed according to decisions made by a computer model. The investment performance of a quant fund is only as good as the computer model that drives the fund's investment decisions.
References in periodicals archive ?
On Monday, the Dow Jones Industrial Average tumbled by 1,600 points, the largest single day fall in history of crashes, and was aggravated by smart beta, passive, quant funds and momentum investors, but fund managers say that crash in global markets was much needed after lofty valuations.
The "Quant Quake" of August 2007 started when many alpha-oriented quant funds fell sharply.
In addition to this, large quant funds have established in-house data science teams performing deep exploration of newer and larger data, and now this trend is spreading to traditional asset managers as well.
Summary: Quant funds use complex software to make buy/sell decisions.
In more recent years, pairs-trading quant funds have looked for and exploited tiny market deviations, often caused by big selloffs and purchases.
So if you'd like your funds managed by facts rather than feelings, you do have an option: Invest in quant funds.
Very large quant funds will have in-house data strategy teams who will often contact companies directly and then evaluate if their data sets are of interest for research purposes and for back testing and so on.
The firm fired over 30 active equity managers in March, Bloomberg reported, shifting its focus to quant funds.
Investors and advisors have been moving more assets into passive investments such as index funds and smart beta ETFs, which are to many a cross between active and passive, but BlackRock's quant funds are something different, says Neal Epstein, a vice president and senior credit officer at Moody's Investors Service.