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.

Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.

References in periodicals archive

"I would love to give up these investment opportunities in a second if people would listen and stop polluting the environment," says David Vogel, founder and chief executive officer of the Florida-based quant fund Voloridge Investment Management LLC.

Investors betting on climate change

Arabesque is a specialist ESG Quant fund manager that uses self-learning quantitative models and big data to assess the performance and sustainability of globally listed companies.

Arabesque appoints new chairman

Eccles, who is also a non-executive chairman with Arabesque Asset Management, the first environmental, social, and governance (ESG) quant fund, responded, "We use ESG information, and we've got a view on materiality that's sector-based.

Sustainability reporting: identifying the global leaders

She added that EMHPrescient offers their Namibian clients money market fund, income provider funds and the Namibian Equity Active Quant fund. "EMHPrescient is not just for big companies, but we also caters for individuals who want to save," said Allen.

EMHPrecient enters investment industry

To this, quant fund managers say their model does involve human intelligence and the use of algorithms merely eliminates human error in the process of investment.

Eliminating Human Error

A variety of criteria are weighed in making up the portfolio of a quant fund. Schwab has developed a proprietary model used to build many of these funds.

Strictly by the numbers: some funds use only statistical data to avoid risk

(Alliance News) - Fund manager Man Group PLC on Wednesday reported a rise in funds under management in the first half, driven by a strong performance by the company's quant funds.

Man Group Interim Funds Rise On Strong Quant Strategy Performance