Second-Guessing the Quants

摘要

There is a mystique surrounding quantitative hedge funds that hire scientists and mathematicians to create complex models to make trading decisions. But is Wall Street becoming disillusioned with quants following the turmoil that rocked many hedge funds this summer?rnWhen the credit crisis hit in late July and early August, quant funds that relied on complex models fell off-kilter, causing a number of hedge funds to sell off the same U.S. stocks simultaneously, leading to volatility that whip-sawed the market. Even marquee brands such as Renaissance Technologies, AQR Capital and Goldman Sachs Group had quant funds that suffered steep losses. "Obviously, we saw in those moves the incredible influence that quantitatively run money has on Wall Street," says John Comerford, EVP and global head of trading research at Instinet, the global agency broker.