What does active quantitative fund mean?
Quantitative fund is an active fund for stock selection and portfolio management through quantitative model. Compared with the mainstream funds in the market, which choose stocks by studying stock fundamentals and field research, the purpose is the same, but the stock selection method is different.
The difference between active quantitative funds and passive index funds is that passive index funds only pay attention to whether they can track the index, while the performance of the index has nothing to do with the investment management of the fund, but only with the compilation method of the index; The model of active quantitative fund pays more attention to finding high alpha stocks, which makes the fund outperform the performance benchmark and similar funds, so quantitative fund is a member of active investment.
Actively quantify the advantages of the fund:
First, this kind of fund has a high degree of discipline, and optimizes the investment portfolio in strict accordance with the precise setting of models and procedures, so as to overcome the human weakness in the investment process and find fine investment opportunities. Specifically, the fund manager transforms the experience, viewpoints and investment ideas formed by long-term practice into measurable indicators, and then transforms the "investment idea" of the fund into a portfolio that can bring long-term stable income by establishing quantitative models and setting indicators, so as to avoid the fund manager from shaking the investment idea due to market sentiment interference. At the same time, in the process of fund operation, that is, when the fund is opening positions, adding positions and reducing positions, the quantitative fund can also take effective quantitative management, monitor the risk of the portfolio in real time, quickly find the risk points in the portfolio, and track and find a large number of investment opportunities that are less than human resources.
Second, with the complexity and diversification of the market, it will become more and more difficult to capture information to reflect the time lag. At the same time, with the continuous emergence of financial derivatives such as stock index futures, margin financing and securities lending, the advantages of quantitative investment in information acquisition and information processing will be further revealed when the market structure tends to be complete.
Third, quick response. Quantitative investment completes the judgment and transaction of market investment opportunities through computers. In the securities market, some arbitrage opportunities are fleeting. Using computer to quantify investment, it is possible to explore arbitrage opportunities by monitoring market changes, but traditional investment is difficult to rely on the brain of fund managers.
Fourth, pay more attention to risk control. Compared with the traditional active management fund, the quantitative fund can well construct the relevant risk management system under the framework of quantitative investment, and control the balance between the expected return and risk of different expected annualization of the portfolio. When the market as a whole is not good, quantitative fund investment can also use hedging strategy to change the expected annualized expected return of Alpha into absolute expected annualized expected return and obtain long-term stable investment return. Quantitative hedge strategy funds have appeared in the market.