Quantitative Hedge Fund.
An investment approach that involves targeting specific drivers of returns across asset classes. Understand how the characteristics driving returns work to better capture their potential for excess return and reduced risk, just as leading investors have done for decades.
There are two main types of models that have driven returns: macroeconomic models which capture broad risks across asset classes and predictive models which help to explain returns and risk within asset classes.
Macroeconomic models as tool for investment strategy.
Economic growth
There is no economic Fundamental.
Interest rates
V shape recovery.
Credit
Credit crisis global recession.
Emerging markets
Rise of new form of debts.
Liquidity
Liquidity time bomb.
Predictive models based on predictive algorithms.
Quality Strategy
Financially healthy companies with stable and high quality earnings.
Momentum Strategy
Stock with upward price trends and market sentiment.
Minimum Volatility Strategy
Stable and lower-risk stocks with lower volatility.
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