Quantitative private equity funds are favored by investors, especially in the market where the index enhancement strategy can quickly adapt to the style change, and are sought after by a large number of funds. By the end of the second quarter of 2002 1, the total assets managed by the domestic quantitative private equity fund industry had exceeded the "1trillion" mark, and the number of1billion quantitative institutions exceeded 20.
The benefits of quantitative investment come from investment strategy. Effective investment strategy is a very complex statistical model, which is used to capture the invalid fluctuations of the market and profit from them. Most quantitative private equity products will adopt multi-strategy combination to pursue more stable income.
Several strategies of private equity fund investment
1. Stock strategy
The stock strategy is to invest in stock assets as the main source of income, and the investment targets are the stocks of listed companies in Shanghai and Shenzhen stock markets and financial derivatives related to stocks (stock index futures, ETF options, etc.). ). Stock strategy is the most mainstream investment strategy in China private equity industry at present. About 80% of private equity funds have adopted this strategy. According to the size of risk exposure, it can be divided into three sub-strategies: multi-share strategy, long-short stock strategy and neutral stock market strategy.
2. Long-term stock strategy
Bull market refers to the behavior that fund managers buy stocks at a low price based on their optimism about a certain stock, and then sell them when the stock price rises to a certain price, so as to obtain the difference income. The investment income of this strategy is mainly realized by holding stocks, and the rise and fall of stock portfolio determines the performance of the fund. The essence of this strategy is simple stock trading, which has the characteristics of high risk and high return.
3. Stock long and short strategy
Simply put, the stock long-short strategy is an investment strategy of allocating different proportions of long-short positions (short selling stocks, short selling stock index futures or stock options) in stock investment on the basis of various theoretical models and experience summary. Build a portfolio that meets the expected return and risk characteristics, and keep tracking and adjusting. Compared with the stock long-short strategy, the common point of the stock long-short strategy is that assets are mainly invested in stocks, and its core is stock selection. The difference is that you only need to choose undervalued stocks when you are bullish, and the strategy of long and short stocks also needs to choose overvalued targets, and you need to do long and short operations to offset portfolio risks. This strategy is characterized by medium income and medium risk.
4. Stock market neutral strategy
Market-neutral strategy means that fund managers completely offset the systemic risk of stock portfolio through short selling, stock index futures, options and other tools, or leave only the minimum risk exposure to obtain excess returns. Market neutrality strategy is a special implementation of stock long and short strategy. Market-neutral strategy requires that the systematic risk of portfolio is approximately zero, and fund managers must establish a strict portfolio risk hedging model to estimate it to ensure that their long and short exposures are equal. The income of such funds mainly comes from the difference between long and short positions. This strategy is characterized by low profit and low risk.
(This answer is for reference only, not as any investment advice)