The last few years haven’t been great to quantitative hedge funds. They’ve been especially rough on Quality Capital Management, which managed about $1 billion two years ago but which is now making due with just $55 million. But wait until its few remaining investors see what it has planned.
The bland market environments are now gone, Aref Karim, QCM’s chief executive officer and chief investment officer, indicated in a Bloomberg Briefs interview today. He predicted that investor interest that dried up amidst lackluster performance should return. In an environment where more divergences in global economies are starting to surface, rising volatility and disparate market conditions should provide great opportunities,” he said. “Taking advantage of such opportunities, which CTAs tend to pursue well, should return the confidence back from investors.”