|Even as quant fund giants such as Winton Capital and Man Group continue to struggle this year, investor demand for more “black-box” hedge funds appears to be growing. According to the Financial Times, 2012 will be a record year for quant fund start-ups with more than 95 launched in the first six months. |
The report cites the increase in the number of bank traders with algorithmic expertise leaving their proprietary trading desks, as well as a growing investor appetite for strategies with less volatility and more liquidity as key factors in the trend. Other quant funds that have struggled over the last couple of years, such as BlueCrest Capital Management's BlueTrend Fund, Aspect Capital, Highbridge Capital, and Renaissance Technologies, will face increasing competition for new capital as this trend continues.