What is a quantitative fund?

The traditional definition of quantitative fund in the market is that the fund mainly adopts quantitative investment strategy to manage the portfolio, and the quantitative investment technology covers almost the whole process of investment, including quantitative timing (such as large-scale asset allocation, the opportunity for individual stocks to intervene), quantitative stock selection, stock index futures arbitrage statistical arbitrage, algorithmic trading, risk control and so on.

2. Classification of quantitative funds

According to the main operation modes of existing quantitative funds, they can be roughly divided into three categories:

The second is the enhancement of quantitative indicators. Quantitative index enhancement fund refers to the actively managed quantitative fund that adopts index enhancement strategy. Different from the traditional index-enhanced funds, this kind of products has the following characteristics: 1) There is no minimum 90% limit on the scope of stock investment, and only the allocation requirements of stocks or hybrid funds limited by contracts are required; 2) The underlying index not explicitly enhanced in the fund contract; 3) In the actual operation process, there is no minimum 80% limit on the proportion of the assets of the investment target index constituent stocks or alternative constituent stocks to the fund stock assets.

The third is to introduce a hedging mechanism to make absolute expected annualized expected returns. Stock hedging strategy refers to a hedging investment strategy that uses derivatives or securities lending to hedge the risk exposure of long positions of stocks, so as to reduce the market risk of portfolio and obtain the expected annualized expected return of stock selection Alpha. Domestic products are mainly market-neutral strategies, that is, the risk exposure of a portfolio is generally required not to exceed 15% to 20% of its long position, and will remain at this level for a long time.

3, the characteristics of quantitative fund

Different from ordinary funds, quantitative funds have four main characteristics: (1) Stock selection relies on data indicators to conduct detailed stock inspection, set expected indicators for stocks, and test their potential. (2) Evaluate the economic recovery industries through specific economic models, allocate the industry weights, and combine the investment ideas and analysis of fund managers. (3) The 360-degree market scanning of this quantitative fund can avoid the limited choice range caused by the personal prejudice and lack of energy of the fund manager. (4) Grasp subtle structural investment opportunities through refined investment operations.