In 20 16, among the top 10 hedge fund managers in the world, 8 were quantitative fund managers. Mathematical models and computers are the favorites of quantitative fund managers. Compared with those high-profile economic celebrities, the wizards of quantitative investment are largely hidden in the market and are "foolhardy and foolhardy". They stood without showing their faces, but concentrated on scientific research. Even if they are so "absent-minded", their investment performance is to kill all heroes.
Quantitative investment and medal fund
Let's first look at the definition of quantitative investment-using computers as a tool to test and execute strategies, and analyzing, judging and making decisions through fixed trading logic and mathematical models, which is quantitative investment.
When it comes to quantitative investment, let's talk about james simons.
Low-key is the principle that a good hedge fund manager abides by, and so is james simons. Even Wall Street professionals know little about him and Fuxing Technology Company. However, in the field of mathematics, Simmons is famous. As early as the age of 23, he received a doctorate in mathematics from the University of California, Berkeley. At the age of 30, he became the head of the Department of Mathematics at Leishmania University in New York. Simmons studied pure mathematics at Stony Brook University for 8 years, during which he founded Chen Shengshen-Simmons Theory, a famous mathematician in China, which had a far-reaching influence on mathematics and physics. From 65438 to 0976, Simmons won the Van Buren Prize, the crown of mathematics, and his personal achievements in mathematics reached its peak. He likes the mathematics medal in academia and even named the fund "Medallion".
Medalian Fund only accepts money from insiders of the company for investment, and will not attract customers at various exhibitions, nor will it be a master on TV.
During the twenty years from 65438 to 0989-2009, the average annual rate of return of Medalian Fund was 35%. If 44% of the proceeds are included, the actual annualized rate of return of the Medal Fund can be as high as 60%, which is more than 20 percentage points higher than the average annualized rate of return of the Standard & Poor's 500 Index in the same period. The trading performance of Soros and Warren Buffett can only be regarded as Simmons' favorite.
In 2008, when the subprime mortgage crisis broke out in an all-round way, the return on investment of Medal Fund remained at an alarming level of around 80%, and it became an evergreen tree of quantitative investment.
In what ways does quantitative investment outperform human beings?
The advantages of quantitative investment are discipline, systematicness, timeliness, accuracy and dispersion.
It can accurately evaluate opportunities and strictly implement investment strategies, and human emotions have not changed. It has a multi-level mathematical model and can observe multiple markets from multiple angles. It can handle massive data, capture more investment opportunities and quickly track market changes. It can also continuously discover new statistical models that provide excess returns.
Because computers can handle a large amount of data, they can build a decentralized portfolio. Humans don't have thousands of hands and eyes, and they can't compete with computers. Quantitative investment constantly digs from massive data, finds laws, and uses these strategies with high probability of winning; It can also screen out large-scale investment portfolios, instead of winning by one or several stocks, and capture financial products with high probability of winning in multiple markets, instead of betting on a single stock.
Master of quantitative investment
A master of quantitative investment has a threshold-a doctor of physics or mathematics, and his ability to solve problems is super strong. Because ordinary people have their own commonness, but geniuses are basically the same. Early wisdom, being good at math and playing with new gadgets are almost the standard configuration of quantitative masters.
The father of quantitative investment is edward thorp. Edward thorp has been naughty since he was a child, but he is as clever as hell. He is known as a gifted mathematician, gambling expert and the father of quantitative investment. Like many big cows, Thorpe showed extraordinary mathematical talent from an early age. At the age of seven, he could figure out how many seconds there are in a year. In order to get free ice cream, he also compared accounts with the grocery store owner. He uses his brain and the grocer uses his computer. Of course, the result is IQ crush. When his peers bought firecrackers to play with, Thorpe had made his own explosives. He got nitroglycerin from his friends' relatives, and used ammonia and iodide crystals as explosives to blow up caves and roads to amuse himself. ...
Since 1970s, Thorpe's fund has achieved double-digit returns for 1 1 year. From 65438 to 0982, he completely quit his job as a university professor and concentrated on managing the fund. Thorpe likes Kelly formula and uses it to calculate the real results of the market. Who's Kelly? His full name is John Larry Kelly. He is not an experienced gambler, but a physicist at Bell Laboratories. Dr Shannon is a doctoral student at MIT and a famous password cracker. During World War II, his deciphering team at Bell Laboratories mainly tracked German planes and rockets, especially when German rockets blitzed Britain. He is a member of the American Academy of Sciences, the American Academy of Engineering, the Royal Society and the American Philosophical Society, and won the prize with soft hands. Citron is also an excellent investor, with a yield of more than 20% for decades. However, such a rich investment performance is very low-key compared with his own achievements in information theory. In order to test the quantitative results, he simply invented a computer himself.
Quantitative experts have long been successful. They only treat investment as a sideline, but they kill a bunch of professionals on Wall Street.