Most hedge fund managers expect institutional investors to increase their allocations to quantitative strategies this year.
According to a June survey of 100 hedge fund managers in the U.S., U.K. and Asia conducted by technology firm SigTech, 51% of managers expect investors to increase those allocations slightly, while 29% of managers expect investors to increase allocations to quantitative strategies dramatically.
In a report on the survey results, SigTech cites managers' optimism about quantitative strategy performance as a key reason they believe investors will increase their allocations. Seventy-eight percent of respondents said quantitative strategies should perform better in 2021 than they did in 2020.
When asked how the number of quant strategies being launched will change over the next two years, 56% said the number of strategies should increase slightly, while another 29% said the number should increase dramatically.
Eighty-six percent of respondents also expect the number of quant managers to increase over the next five years, with 58% believing that number will increase slightly, while 28% of respondents believe that number will increase dramatically.
