The wind of quantification rises again, and the ten billion echelon expands rapidly
Completed the initial strategy iteration of quantitative private placement, ushered in another wave of development this year.
According to Hu Po, the future star fund manager of private placement network, the continuous emergence of 10 billion level quantitative private placement in recent two years has a great relationship with the adaptability of the strategy. Stock long strategy has outstanding performance in structural bull market or comprehensive bull market, while quantitative strategy is easier to obtain high return in high volatility and ineffective market. From the perspective of the trend of A-share in the past two years, the market performance in 2018 is poor, while in 2019 and 2020, the market performance will be improved first and then restrained, and the fluctuation range of A-share will be significantly increased. Therefore, the quantitative strategy has attracted the attention of investors with the characteristics of low withdrawal, stable returns and controllable risk.
According to the data, as of the end of October, 10 billion level quantitative private placements have achieved positive returns this year, and Lingjun investment income is more than 40%. From the performance of the past three years, the performance of 10 billion level quantitative private placement is relatively stable, and there is no loss.
Magic square also said that in the past two years, high-quality assets have become increasingly scarce. As a substitute for fixed income, quantitative hedge funds have begun to attract the attention of institutional investors and a large number of individual investors. Moreover, excellent overseas talents have returned to China. The application of new technologies and the introduction of refined strategies have promoted the income level of quantitative investment, making it have a strong market competitiveness.
Small space being squeezed by private placement industry
Haomai Fund Research Center said that under the existing scale, the head quantification institutions trade both large market value stocks and small market value stocks. Among them, small and medium-sized market value stocks are the most easy target for institutions to obtain excess returns, and quantitative institutions are the most crowded. Moreover, the head office invests tens of millions of yuan every year in the construction of information, systems, computing power, personnel, etc., expanding and iterating the factor library, constantly updating the algorithm, and gradually increasing the computational power. Small and medium-sized quantitative private placement may face the problem of model collapse. Therefore, in the future, the net value of head quantitative private placement products will be more stable and the fluctuation of small and medium-sized quantitative private placement products will be more obvious Situation.
Ilow also believes that when the market liquidity is abundant, small and medium-sized private placement can still have a certain survival space, but if the market enters the stock game stage, small and medium-sized private placements will face difficulties in terms of capital introduction, talent absorption, channel support, etc.
From the perspective of capital selection, the advantages of head quantitative private placement are relatively obvious. According to incomplete statistics, as of November 20, Lingjun investment has recorded more than 200 new products in the past year, ranking first among the 10 billion level quantitative private placement. Magic square quantification followed closely. Since this year, more than 140 new products have been put on record, and the number of new products established by Mingyi investment has also reached 117.
An industry insider revealed that at present, the channel attaches great importance to the quantitative private placement of the head, and some channels even take the initiative to reduce the commission expenses. In recent years, the performance of head private placement is more and more outstanding, and it is more and more difficult for small-scale private placement to obtain excess returns. This year, the liquidity remains reasonable and abundant, and the fund is very popular with the 10 billion level quantitative private placement. If the channel does not sell such products, it will lose a large number of users, which to a certain extent exacerbates the Matthew effect of quantitative private placement.
High frequency strategy capacity limited head mechanism for transformation
However, there are advantages and disadvantages in the world. In terms of capital and channel resources, the head quantitative private equity institutions are also faced with the problems of limited strategic capacity and declining excess returns.
On November 11, Yanfu Investment announced that since the companys management scale has reached 10 billion yuan, it has decided to control the management scale in consideration of the interests of investors and the long-term and stable development of the company.
From the historical data, this is not the first time that quantitative private placement actively controls the scale. Last year, magic square has published a public document announcing the suspension of all product recognition / subscription and addition. Jiukun investment also strictly limits the amount of fund-raising according to its scale and strategic capacity.
All quantitative private placement will encounter this problem, that is, while expanding the management scale, the excess return will show a downward trend. Therefore, the choice of closing to protect the interests of existing investors, subsequent trading and algorithm will have further room for improvement Zhou Ziyi, vice president of Yanfu Investment Co., Ltd.
According to the analysis of industry insiders, the capacity of high-frequency short cycle strategy adopted by quantitative private placement is smaller than that of low-frequency long-term strategy. If the scale rises too fast, the strategy will fail quickly. To this end, a number of head quantitative private placement is increasing the investment in computing power, seeking transformation.
On May this year, a new generation of computer has been put into operation for two years. At the same time, there are also seller analysts who jumped to magic square quantification and participated in the establishment of its fundamental department.
Zhou Xin, CEO of Xiyue investment, said: the natural advantage of high-frequency strategy is that the revenue is relatively stable, the transaction is completed instantly and the profit is made immediately, but the disadvantage is that the capacity is relatively limited. Moreover, in the case of complete competition for speed, once a faster competitor appears, he will start to lose money, and the competition is very fierce. Therefore, a number of well-known quantitative private placement in the market began to shift to a broader fundamental quantitative strategy.