Gareth Henry Presents Facts to Back Up the Increase in Quantitative Investments
Managing Director of Fortress Investment Group, Gareth Henry has almost 12 years of experience working in the industry of management trading. He is an author and publishes writings relating to every aspect of the investment sector including economic conditions, markets and strategies. Last month of this year, he published an article on Medium-Economy informing readers about the rise in quantitative investing. He provided facts from reliable sources to back up his claim and touched on other factors that affected quant funds.
Quantitative investing relies heavily on strategies, computed data, and quantitative analysis to identify opportunities in investments. Financial institutions and hedge fund managers use QA or quantitative analysis, a widely known method used by analysts to create models using statistics and mathematics. The purpose of the model, research, and measurable data is essential to processing a large quantity of variables. The information is helpful for trading volumes, assets pricing, and making assumptions of the impact economic events may have on asset prices. Find out more about Gareth Henry at Bloomberg.
Gareth Henry presented facts he claims for the rise of quantitative based on data points noted by Alex Foster, the vice president of Quantiacs. According to Foster, 90 percent of the volume in public markets in the United States use quantitative tools for trading. A 2016–2020 report claimed the market in quant finance is $1 trillion with rates over the average at 10.3 percent. The report also highlighted six hedge funds out of 10 that were quant funds focusing on commodities.
According to Gareth Henry, the quantitative method provides portfolio analysts and investors with valuable tools for examining and evaluating historical, present and future events. Investors, analytical chemists, financial analysts, and social science professionals commonly use the technique. They are turning to programs and applications for identifying, executing and managing investment strategies, and to make investing decisions. Banking institutions, Wall Street, and governments rely on quantitative analysis for policy decision-making, and to track and measure statistical information. Henry advises quant funds to pay close attention to unstable changes of interest rates, length of holding periods, and underlying management risks.