The biggest and fasting growing trend in investing is the increasing use of Quant (Quantitive) Funds. As it stands somewhere between 16-25% of current trade volume is made up of quant funds. Quant funds are a product of the growing trend of quantitive analysis. The same technology that is defeating world class chess champions, and propelling self driven cars is slow becoming a dominant force in the financial world as well.


Quantitive analysis is a form of analysis based on mathematical measurements, calculations, statistical modeling and research. It's aim is to use the data and the statistics to gain an objective understanding and predictably to the behavior of events, markets, companies, financial instruments, etc. Computer based models are designed and then used to determine the attractiveness of an investment.

The early progenitors of quantitive analysis and quant funds are often referred to as "quants" themselves. Even with their growing popularity quantitive funds still face skepticism. No one really understands how their algorithms work and thus the process is sometimes referred to as "Black Box". Not all investors are fond of the mystery behind quant funds.

Conversely actively managed quant funds are beginning to consistently outperform their counterparts. With a data driven, testable, and easily reviewable as to the errors approach, quant funds are attracting more and more investor dollars.This in turn leads to more development of the technology and methodology behind quantitive analysis, hence making it more effective and attracting eve more investor dollars.

Late 19th - early 20th century French mathematician Louis Bachelier is credited as the early pioneer for quant analysis and funds. In his Ph.D. thesis titled "The Theory of Speculation" Bachlier makes use of statistical analysis to study and understand stock price fluctuations. As with most pioneering genius, Bachelier's ideas were initially met with skepticism and scrutiny. Decades later his work would be properly recognized.

The financial crash in the 1930's led two Columbia professors - Benjamin Graham and David Dodd to publish a book titled "Security Analysis". The placed an impetus on developing a new investing strategy that was more disciplined in its framework. This approach focused on the analyzing a company's financial statements and comparing it's market value against it's intrinsic value. It would lay the foundation for what is now know as "value investing". As the technology developed with the theory, more investors and academia jumped on board.

The earliest versions of activity managed quant funds were developed and launched in the first half of the 1980's. Since then software has rapidly evolved to suit the purposes of gathering, analysis, and making predictions based on the data. Ahead of the 2008 market crash, quant funds began to exhibit strange behavior. As if they had predicted the crash a year before it happened, quantitive funds across the board began entering into sell positions. While some viewed this as erratic behavior and felt cause for concern, others saw the true potential in the quantitive analysis process, and since then quant funds have more than tripled in market share.

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Over two years into the most momentous event in our lives the world has changed forever … Some of us have PTSD from being locked up at home, some are living like everything’s going to end tomorrow, and the rest of us are merely trying to get by. When the pandemic hit we entered a perpetual state of vulnerability, but now we’re supposed to return to normal and just get on with our lives.

What does that mean? Packed bars, concerts, and grocery shopping without a mask feel totally strange. We got used to having more rules over our everyday life, considering if we really had to go out or keeping Zooming from our living rooms in threadbare pajama bottoms.

The work-from-home culture changed it all. Initially, companies were skeptical about letting employees work remotely, automatically assuming work output would fall and so would the quality. To the contrary, since March of 2020 productivity has risen by 47%, which says it all. Employees can work from home and still deliver results.

There are a number of reasons why everyone loves the work from home culture. We gained hours weekly that were wasted on public transport, people saved a ton of money, and could work from anywhere in the world. Then there were the obvious reasons like wearing sweats or loungewear all week long and having your pets close by. Come on, whose cat hasn’t done a tap dance on your keyboard in the middle of that All Hands Call!

Working from home grants the freedom to decorate your ‘office’ any way you want. But then people needed a change of environment. Companies began requesting their employees' RTO, thus generating the Hybrid Work Model — a blend of in-person and virtual work arrangements. Prior to 2020, about 20% of employees worked from home, but in the midst of the pandemic, it exploded to around 70%.

Although the number of people working from home increased and people enjoyed their flexibility, politicians started calling for a harder RTW policy. President Joe Biden urges us with, “It’s time for Americans to get back to work and fill our great downtowns again.”

While Boris Johnson said, “Mother Nature does not like working from home.'' It wasn’t surprising that politicians wanted people back at their desks due to the financial impact of working from the office. According to a report in the BBC, US workers spent between $2,000 - $5,000 each year on transport to work before the pandemic.

That’s where the problem lies. The majority of us stopped planning for public transport, takeaway coffee, and fresh work-appropriate outfits. We must reconsider these things now, and our wallets are paying

the price. Gas costs are at an all-time high, making public transport increase their fees; food and clothes are all on a steep incline. A simple iced latte from Dunkin’ went from $3.70 to $3.99 (which doesn’t seem like much but 2-3 coffees a day with the extra flavors and shots add up to a lot), while sandwiches soared by 14% and salads by 11%.

This contributes to the pressure employees feel about heading into the office. Remote work may have begun as a safety measure, but it’s now a savings measure for employees around the world.

Bloomberg are offering its US staff a $75 daily commuting stipend that they can spend however they want. And other companies are doing the best they can. This still lends credence to ‘the great resignation.’ Initially starting with the retail, food service, and hospitality sectors which were hard hit during the pandemic, it has since spread to other industries. By September 2021, the US Bureau of Labor Statistics reported 4.4 million resignations.

That’s where the most critical question lies…work from home, work from the office or stick to this new hybrid world culture?

Borris Johnson thinks, “We need to get back into the habit of getting into the office.” Because his experience of working from home “is you spend an awful lot of time making another cup of coffee and then, you know, getting up, walking very slowly to the fridge, hacking off a small piece of cheese, then walking very slowly back to your laptop and then forgetting what it was you’re doing.”

While New York City Mayor Eric Adams says you “can't stay home in your pajamas all day."

In the end, does it really matter where we work if efficiency and productivity are great? We’ve proven that companies can trust us to achieve the same results — or better! — and on time with this hybrid model. Employees can be more flexible, which boosts satisfaction, improves both productivity and retention, and improves diversity in the workplace because corporations can hire through the US and indeed all over the world.

We’ve seen companies make this work in many ways, through virtual lunches, breakout rooms, paint and prosecco parties, and — the most popular — trivia nights.

As much as we strive for normalcy, the last two years cannot simply be erased. So instead of wiping out this era, it's time to embrace the change and find the right world culture for you.

What would get you into the office? Free lunch? A gym membership? Permission to hang out with your dog? Some employers are trying just that.

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Did you hear about the Great Resignation? It isn’t over. Just over two years of pandemic living, many offices are finally returning to full-time or hybrid experiences. This is causing employees to totally reconsider their positions.

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