What are quantum funds?

also known as quantitative funds, quantum funds are investments or mutual funds that use the process of quantitative analysis to decide on the selection of securities as investments. The aim is to use models created using software to evaluate the potential of the security and decide whether to buy or sell this asset. In a net situation in the store, computer models provide recommendations for purchase or sale, without actual entry from the human fund manager. Fundy Quant often uses both computer -generated models and expert knowledge of fund manager to decide what is and is not purchased for the investment fund.

Quantum funds often note that the use of computer models helps to remove an element of sentiment or other emotions from the process of evaluating different securities. In theoryOs and less to consider previous performance, current market conditions and expected future movements. As a bonus, the use of models allows you to complete the analysis in a much shorter time than the individual could manage the task.

Detractors of quantum funds often react by observing that the analysis provided by the model is only as good as the data entered on the front. If the information that is provided for analysis is obsolete or incorrect, the results will also be wrong. Without human intervention, in order to double the truth of the data and logic of the recommendations resulting from the analysis, the possibility of a costly error with the fund management will increase.

There are quantum funds that use a hybrid process as a means of advantages to the AS models as an expertise of the competent fund manager. With this approach, securities for the fund are evaluated using a computer model and provide recommendations thatThen the fund manager may consider. If the fund manager finds that his assessment of the security agrees with the recommendations, there will be a business activity. If the fund administrator disagrees with the recommendations, further research will be carried out before any business orders. This approach makes it possible to establish checks and balances that increase the chances of taking investment decisions that are ultimately in the best interest of the fund and its shareholders.