The article "Quant Fund Performance Stumbles But Investors Plow Ahead" by Lydia Tomkiw talks about how "Quantitative hedge funds are fighting a spate of poor performance and efforts from fundamental shops to use more quant-like investing approaches to win business, but so far investor interest remains high."
Deeper into the article Chris Addy is quoted:
However, newer quant funds can also raise operational due diligence questions. Generally they may have a short operating history, which gives rise to business risk," he says, while quant strategies also should trigger cybersecurity concerns. Otherwise, quant funds are not “unduly risky” compared to other strategies, he adds."
To read the full article, visit FundFire.