About Quantitative Macro Hedge Funds
Macro Hedge Funds
and Quantitative Strategies
One common myth about investing in a quant fund is that it requires sophisticated investment knowledge.
Quantitative investment is really a type of strategy applied to global macro hedge funds.
Global macro hedge funds are actively managed funds that capitalise on broad market fluctuations in response to different global events – whether geopolitical or economic. These cover a wide variety of assets and instruments spanning equities, commodities, bonds and other derivatives to diversify the portfolio and maximise returns.
Global macro hedge funds are typically either managed by a key-man or take a more systematic approach that is based on quantitative strategies.
Quantitative strategies are a combination of data and analytics. The advantage that quantitative macro hedge funds have over a key-man approach is that you take human error and bias out of the equation – and let the predictive modelling do the heavy-lifting. And while some funds do incorporate some level of data analytics and modelling, quantitative macros hedge funds focus on predictive analytics and advanced modeling to make the investment decisions.
The Search for Alpha
But not all data and predictive analytics are created equal.
Each quantitative fund’s performance depends on the robustness of data, how sophisticated the predictive modelling techniques are, and the accuracy of the risk management strategies employed.
This is one of the reasons why some funds have outstanding alpha, while others less so.
The Golden Horse system combines global macro views with advanced modeling techniques to identify patterns, pick winners and predict future volatility so that we can respond ahead of market movements and make the right bets ahead of market shifts.
Being nimble is the key to our success: we look at all asset classes globally with a fund structure that allows us to get in and out of positions swiftly in order to extract more alpha.
Rather than taking a formulaic approach, our predictive models rebalance the portfolio on a daily basis to maximise every opportunity for returns.