Why Quant For The Future
Executive Summary
In the 1990s PGIM was among the earliest to explore quantitative investment techniques in response to our own clients’ shifting needs. Thirty years and many market cycles later, quants continue to leverage their unique strengths to help investors navigate their complex financial challenges.
- With the rapid expansion of available company data over the past 15 years, a quant’s ability to quickly and efficiently synthesize data is of even greater importance in identifying both opportunities and risks.
- As investors balance their need for alpha with low risk, low cost strategies, a quant’s focus on delivering attractive risk-adjusted alpha at a lower fee can be an appealing solution.
- The combination of a broad view of the investment universe and a flexible approach to portfolio construction allows quants to build custom portfolios that can address investor challenges without sacrificing alpha or significantly deviating from tracking error targets.
