Believe the hype. Quants have never been more popular. After doubling over the past decade, assets run by so-called systematic funds have hit a record $500 billion this year, according to estimates from Barclays Plc.
Alternative data providers see huge potential in providing their data to discretionary asset managers who are losing assets to quantitative and systematic funds.
We get it, algorithms and quants and machine learning and roboadvisors and all the rest are the latest buzz words in a financial world increasingly comfortable with the concept of computers running things,
… the model of hedge funds charging “2 and 20” — a 2 per cent management fee and 20 per cent performance fee — for investing in large-cap stocks rising and falling “doesn’t work any more” and is ripe for disruption.
If you aren’t being recruited because you didn’t work at Bridgewater, maybe it is time to create your own hedge fund operation by creating an algo on CloudQuant.