New York partner Kay Gordon was quoted in an HFM Week article titled, “What’s Driving the Quant Push?” The article discussed large firms’ moves towards creating or expanding quant teams due to more managers seeing potential in systematic trading.
Kay commented on the skepticism held by investors regarding the benefits of quant. “There was a lot of pulling back from complex strategies by investors in the wake of Madoff,” said Kay.
Kay also commented on the effects of the complexity of quant. “With quant strategies, things are bound to become more complex so there will be a need for greater understanding of these strategies before quant allocations match discretionary allocations,” she said.