“So there is no emotion to it,” he tells The Edge Singapore in an interview. “We will never have a situation where somebody thinks that we are at the bottom of the market, and therefore wants to double up [exposure to a particular security] … Only when the market volatility comes down, then the model will tell us to scale up our positions again.”
SINGAPORE (Feb 7): As equity markets have tumbled in response to the spread of the coronavirus from China, fund managers are probably worried about the performance of their respective funds. But not so for Quantedge, a homegrown hedge fund that employs quantitative strategy to seek supernormal returns.
Suhaimi Zainul-Abidin, CEO of Quantedge, says the company’s sole hedge fund, which is available only to accredited investors, is recalibrated on a daily basis. In particular, its quantitative model informs when the portfolio should reduce its exposure to certain securities in response to market volatility and by how much. This is done to keep the portfolio at a certain risk level, he says.
