And how are quant funds doing?

August 19 – Financial Times (Julie Creswell):  “They were revered as the brightest minds in finance, the ‘quants’ who could outwit Wall Street with their Ph.D.’s and superfast computers.  But after blundering through the financial panic, losing big in 2008 and lagging badly in 2009, these so-called quantitative investment managers no longer look like geniuses… The combined assets of quantitative funds specializing in United States stocks have plunged to $467 billion, from $1.2 trillion in 2007, a 61% decline, according to eVestment Alliance… One in four quant hedge funds has closed since 2007, according to Lipper Tass.  ‘If you go back to early 2008, when Bear Stearns blew up, that’s when a lot of quant managers got blown out of the water,’ said Neil Rue, a managing director with Pension Consulting Alliance… ‘For many, that was the beginning of the end,’ he added.”

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