Quantitative investing
 |
It has been suggested that this article or section be merged with Quantitative analyst. (Discuss) Proposed since May 2009. |
 |
This article needs additional citations for verification. Please help improve this article by adding citations to reliable sources. Unsourced material may be challenged and removed. (March 2009) |
Quantitative investing represents an investing technique typically employed by the most sophisticated, technically advanced hedge funds. These quant shops employ fast computers to find predictable patterns within financial data. Some of the larger quant shops include but are not limited to Renaissance Technologies' Medallion Fund, D. E. Shaw & Co., Barclay's Global Investments (now known as Blackrock), Numerics, GMO, First Quadrant, Robeco, etc.
Typically, quant investing is implemented by people who have spent time in the physics, math, computer science, or statistics disciplines. The condensed results of quantitative analyses, however, can be readily accessible to all far-from-quantitative investors, when presented in an intuitive framework.
The process consists of thorough examination of vast databases searching for repeating patterns—persistent occurrences of a phenomenon, correlations among liquid assets ("statistical arbitrage" or "pairs trading"), or price-movement patterns (trend following or mean reversion).
 |
This finance-related article is a stub. You can help Wikipedia by expanding it. |
