As the name indicates, Quant Fund stands for Quantitative Fund and in this type, the market strategies are devised using quantitative methods instead of human interface. The value of Quant fund nosedived during 2020 due to miscalculation and prediction by market strategy softwares for the emerging market trends. This caused a huge loss to investors during the first quarter of previous year. On the other hand, things worsened further with the outbreak of coronavirus pandemic. All financial and economic activities came to a grinding halt. Now, as the vaccine for coronavirus has arrived, it is expected that the stock market will rebound, and growth of quant funds are likely to improve until the second quarter of 2021. “Stock-pickers had several years of self-inflicted under-performance in the past decade, and the narrative was that computers had defeated humans,” said John Thaler, a longtime equity manager who returned client money in 2015 and this year started a new firm, Hampton Road Capital Management. “Then, the quants hit an air pocket of tough relative performance, and this year, long-short equity managers outperformed by an enormous amount.” Let us review Best Global Quant Funds for 2021 in this article. The information has been shared by Insider Monkey.
One of the best quant funds is Two Sigma Advisors. This fund was established way back in the year 2001 by David Siegel and John Overdeck. Since its inception, the quant fund reported enormous profits but since the past few years, the fund is struggling due to the emerging market trends. During the month of November last year, Two Sigma Advisors fund fell by 5%. Home Depot and Microsoft are the two biggest investors in Two Sigma Advisors’ fund portfolio. Another best company is Bridgewater Associates. This company decides to select funds for investment through quantitative investment techniques. Several portfolio funds including Pure Alpha II of Bridgewater Associates declined by 17% until November last year. It has been difficult for various quant funds to sustain the volatile market situation amid the coronavirus outbreak. As per available data, the fund fell by 3% during March while during April, last year, the fund witnessed a decline of 4.3%. This decline continued for the remaining part of 2020. Read more about various other quant funds at 10 Biggest Quant Funds in The World, 10 Stock Picks on Yahoo and read how other quant funds are managing to survive in the current volatile scenario.
