Quant names also snagged the top 3 positions as the largest hedge funds in the world today – Bridgewater Associates (USD 160 billion), Renaissance Technologies (USD 110 billion), AQR Capital (USD 61 billion).
And just recently, one of our local hedge funds Vanda Global made the headlines as the top performing hedge fund in 2019, delivering a blistering 278%. The fund uses a “risk-weighted” approach towards active asset allocation globally. Although there is no public information suggesting he is using a purely quantitative approach, its profile does resemble that of an increasingly popular allocation methodology known as Risk Parity.Quantitative investing, virtually unheard of 2 decades ago, has come a long way. While still the minority, quantitative managers now represent about a quarter of the hedge fund industry. Collectively, they managed one third of the industry’s assets or roughly USD 1 trillion.
