Skip to main content

Goldman: Quant Hedge Funds Have To Do Better, Be Less Quant-y

  • Author:
  • Updated:

Quantitative hedge funds, which really stunk up the joint two years ago, are getting some tough love from a guy who knows just how bad it can get.
Robert Litterman is head of quantitative resources at Goldman Sachs Asset Management, which in 2007 watched its Cadillac of hedge funds, Global Alpha, turn into a Yugo. And as he sees it, from his alternately lofty and lousy perch, and with his many years of experience in the field, quantitative hedge funds have to do a better job of making money for their clients. And in Litterman's considered opinion, they need to find new ways of making money. New and non-quantitative, apparently.

We're putting together data that's not machine-readable.

I see. Any other pearls of wisdom?

You have to adapt your process. What we're going to have to do to be successful is to be more dynamic and more opportunistic.

Totally worth the price of admission to the Quant Invest 2009 conference (flight to Paris not included). Thank you, Bob.
Quant hedgies must fish in fresh waters-Goldman [Reuters]



Paul Tudor Jones Quant Goes Where He’ll Never Have To Set Up Another E-Mail Blast

Tudor Investment Corp.’s quantitative revolution is not going very well.

By D J Shin (Own work) [CC BY-SA 3.0 or GFDL], via Wikimedia Commons

Quants Hungry For Data Fix, Looking For Dealers Everywhere

If you’ve got the good stuff, they’ve got the green.


Hedge Fund Manager Engineering His Own Obsolescence

Muhammed Yesilhark is this close to turning things over to 40 electronic versions of himself.

Steve Cohen Is A Quant Now

Well, he's not, but 30 of his new employees are.

See page for author [Public domain], via Wikimedia Commons

The Nerds Have Won: Wall Street Edition

Get ready to report to the kind of people whose heads you used to stick in toilets.