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A hot $1 billion hedge fund is building computers to predict how human traders will act





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People are getting quantitative hedge funds all wrong, according to a manager who is launching a new $1 billion fund.

Manoj Narang is launching New York-based MANA Partners next month, using a mix of quant and alternative data strategies.

Quant funds have historically analyzed data using mathematical techniques to search for patterns of trends. The idea here is that quants can pick up on relationships between financial assets that human traders miss out on.

That model is outdated, according to Narang. Quants funds don’t generate returns by being smarter, and picking out trends before everyone else, but by predicting what everyone else is read more >>>

Source:: BusinessInsider.Com

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