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.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

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 ?
(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.
"Quant funds"-like most everything else in life-worked well until they didn't.
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.
Nevertheless, the news underscored the recent problems encountered by various "quant funds", which trade on the basis of mathematical models.
So if you'd like your funds managed by facts rather than feelings, you do have an option: Invest in quant funds. "Quant funds select their portfolios solely on quantitative measures," says Kai Wiecking, a mutual fund analyst at Morningstar.
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.
If we are lucky, these quant funds might find it profitable to lease these fraud-finding algos to Facebook, Twitter and Google (unless it's more profitable for them to keep the code to themselves).