Quantitative investing and research offers investors powerful tools to meet their goals. For many years, however, quantitative investing had been primarily utilized by large institutions and hedge funds. Now, more and more firms are turning to quantitative strategies to gain a competitive edge in the market. Wall Street's half-trillion-dollar business cloning quant trades has some surprising new customers: the very firms whose strategies it aims to copy.
Macquarie and Protean Capital LLP (Protean) execute the first Quantitative Investment Strategies (QIS) index that uses signals based on reinforcement learning. This innovative approach combines traditional quantitative strategies with cutting-edge technology to deliver superior results for investors. How do quantitative investment strategies deliver alpha? And how will new technologies like generative AI change the way these teams work?
Investors will need clear strategies to find the next generation of AI winners and to understand and apply the technology themselves. Carry strategies attract bulk of interest; banks eye growth in volatility, intraday, and emerging market replication. Only a strategy that is unbiased in these aspects, while being designed to dynamically adapt to its optimal mix, can manage risk effectively.