Quantitative Strategy, Trading, and Algo Development Industry News

Rise of Robots: Inside the World’s Fastest Growing Hedge Funds

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.

In some ways, their meteoric rise is due to the same technological advances that are disrupting most industries. Faster computers and better data has enabled asset managers to automate skills that once were limited to market legends.

The diversity of quant strategies, however, makes it hard to generalize about the group. Categories include factor investing, risk parity and managed futures — not to mention secretive black-box funds, like Renaissance Technologies LLC. Even fundamental traders now arm themselves with quantitative techniques, accounting for $55 billion of systematic assets, according to Barclays.

Read the full article on Bloomberg

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