Tuesday 10 February 2009

$9.3 bn drains from quant funds

Quantitative investment managers suffered a net outflow of $9.3bn in the third quarter last year as they ran for cover from the financial sector in favour of information technology and materials stocks.

The activities of quantitative funds, which trade using statistical models designed to identify patterns in financial markets, are increasingly important because they account for such huge trading volumes.

Tabb Group, the US consultancy, predicts that by next year algorithmic trading, one aspect of quant-investing, will account for half of all US equity trading.

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