What does quantitative private placement mean?

Quantitative private placement is an investment method that quantifies the assets of private equity funds, and the computer system conducts professional statistics to stop profit and stop loss in time.

The benefits of quantifying private equity funds are:

Strict discipline: it will not be influenced by the decision-making and psychology of the fund manager, but computerized trading;

Quick response: when there is a major event in the market, the computer system will track it in time and wait for an opportunity to sell it.

Extended data

Because of the differences between basic data and forecasting methods, quantitative strategies can be subdivided in many ways. Two common strategies are fundamental strategy and quantity-price strategy. Fundamental strategy is based on the fundamental data of individual stock companies, such as return on net assets, growth rate of net profit, changes in net cash flow, etc. To predict the future performance of stock prices. The strategy of volume and price is to predict the future stock price completely according to the trading data such as the price trend and volume change of individual stocks.

There is an impossible trinity of income, risk and capacity in quantitative strategy, that is, there is no perfect strategy with high income, small fluctuation and large capacity, and generally only three can be selected. The strategy of cost-effective risk-return is often small in capacity; On the other hand, the strategy that can accommodate a large amount of funds has a relatively low cost performance.

Fundamental strategy has the advantages of long holding period, low turnover rate, slow attenuation and large capacity, which is more suitable for the low threshold of public offering products and the positioning of inclusive finance. Therefore, the public offering of quantitative products is mainly based on fundamental strategy, sometimes supplemented by long-term volume and price strategy. In contrast, the short-cycle volume and price strategy has high turnover rate, fast attenuation and small capacity, which is more in line with the high threshold of private equity products and the positioning of professional services. Therefore, private quantitative products are often based on short-term volume and price strategies, and sometimes some fundamental strategies and long-term strategies are added.

Because of the different characteristics of public offering and private offering products, managers have made different choices in the quantitative strategy of impossible trinity. Public offering is mainly based on fundamental quantitative strategy, while quantitative private placement is mainly based on quantity and price strategy.