What does quantitative private equity fund mean?
Quantitative private placement refers to private equity funds with quantitative countermeasures, that is, the fund chooses quantitative methods to make investment decisions, and the system will stop loss and take profit in time through professional data analysis. Quantitative countermeasure investment is to let the computer automatically issue trading instructions and complete computer automation through quantitative methods.
Quantify the advantages of private investment:
1, the trading method is more flexible: there are many trading restrictions in public offering quantification, which limits the profit space to some extent. With many restrictions on trading, Public Offering of Fund has an advantage in trading speed because of its large assets.
2. More advanced technology and richer preventive measures: public offering has many restrictions on derivatives and reverse transactions, and it is impossible to conduct high-frequency transactions. Public offering quantization generally presents low-frequency characteristics, with fundamentals as the core, while private offering quantization is more flexible, covering from high frequency to T+0 to middle and low frequency;
3. The incentive mechanism is different, and outstanding talents are injected into private equity investment: private equity investment funds can flexibly set the proportion of sales compensation and the way to obtain it, mainly because the fund return rate is positively related to the company's profits, which is more attractive to outstanding talents. The welfare of public offering is not as good as that of private offering, so it is difficult to retain talents.
What are the disadvantages of quantitative funds?
The resilience of quantitative fund is weak, and the structural similarity of quantitative fund model will directly affect the effectiveness and liquidity of the model. If the market trend changes suddenly, it will take some time for the quantitative fund upgrade adjustment algorithm. The quantitative model is based on historical data, so its ability to absorb new information is slow.
Moreover, there is no way to pursue very strong profits after adopting quantitative funds, which usually focus on long-term performance. In other words, if the user's goal is to pursue short-term profits, quantitative funds cannot achieve this goal. In addition, once the external environment changes or some major events occur, if the fundamentals change, its effectiveness is likely to be affected.