Quant funds at a crossroads

The rise of lower-cost IT systems has been a huge boon to the many quantitative hedge funds and quant system providers out there. The credit crunch has led to a bit of handwringing over the future of quant funds. The issue appears to boil down to whether technology can overcome the drawbacks. In a column, the founder of the Aite Group notes that declining IT costs across the board and more a powerful system that can deal with once unfathomable amounts of data will continue to be powerful drivers. But a quant system is only as good as the designers who create it. A talent shortage looms. People are hungry for something that delivers above average alpha. Interestingly, that will make the role of technology all the more prominent. Every second, every trade counts.  

For more:
- here's the column in Advanced Trading

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