Quant funds and a trillion dollar question of risk Inside Financial & Risk

Quant funds are expected to account for US$1 trillion in assets this year. But when algorithms are managing this money, who manages the algorithms? Computer-powered, data-driven strategies have continued their spectacular march towards dominating the hedge fund industry. According to research by HFR, the amount of money being managed by quant hedge funds rose to more than $940 billion by the end of October 2017 and is on course to pass the $1 trillion at some point this year. This is an enormous amount of money being managed by machines.