{"id":3285,"date":"2010-04-25T02:33:59","date_gmt":"2010-04-24T21:03:59","guid":{"rendered":"http:\/\/www.niftylivecharts.com\/blog\/?p=3285"},"modified":"2010-04-25T02:33:59","modified_gmt":"2010-04-24T21:03:59","slug":"what-is-a-quant-fund","status":"publish","type":"post","link":"https:\/\/www.niftylivecharts.com\/blog\/what-is-a-quant-fund\/","title":{"rendered":"What is a Quant Fund?"},"content":{"rendered":"<p>An investment fund that selects securities based on quantitative analysis. In a quant fund, the managers build computer-based models to determine whether an investment is attractive. In a pure &#8220;quant shop&#8221; the final decision to buy or sell is made by the model; however, there is a middle ground where the fund manager will use human judgment in addition to a quantitative model.<\/p>\n<p>If computers can beat world champion chess players, shouldn&#8217;t they be able to beat the traders on Wall Street? That&#8217;s the thinking behind quant funds, whose name comes from the term &#8220;quantitative analysis&#8221;. The advantage is that computers aren&#8217;t swayed by emotion, and they obviously react much faster than a person ever could. The problem is that humans have to program those computers, and even computers can make mistakes when they are programmed incorrectly. Remember the saying &#8220;garbage in, garbage out&#8221;. To take advantage of the power of computers, you still have to figure out a superior investment strategy.<\/p>\n<p>The term &#8220;quantitative fund&#8221; also doesn&#8217;t tell you anything about the actual investment strategy being used. Any study of a company or an industry based on quantitative data can be considered a quant strategy.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>An investment fund that selects securities based on quantitative analysis. In a quant fund, the managers build computer-based models to determine whether an investment is attractive. In a pure &#8220;quant shop&#8221; the final decision to buy or sell is made by the model; however, there is a middle ground where the fund manager will use [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":"","footnotes":""},"categories":[939,7,1],"tags":[7475],"class_list":{"0":"post-3285","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-derivatives","7":"category-future-and-options","8":"category-general","9":"tag-quant-fund","10":"entry"},"_links":{"self":[{"href":"https:\/\/www.niftylivecharts.com\/blog\/wp-json\/wp\/v2\/posts\/3285","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.niftylivecharts.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.niftylivecharts.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.niftylivecharts.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.niftylivecharts.com\/blog\/wp-json\/wp\/v2\/comments?post=3285"}],"version-history":[{"count":0,"href":"https:\/\/www.niftylivecharts.com\/blog\/wp-json\/wp\/v2\/posts\/3285\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.niftylivecharts.com\/blog\/wp-json\/wp\/v2\/media?parent=3285"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.niftylivecharts.com\/blog\/wp-json\/wp\/v2\/categories?post=3285"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.niftylivecharts.com\/blog\/wp-json\/wp\/v2\/tags?post=3285"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}