A Research On The Risk Control Of Quantitative Hedge Fund Companies

Under rapidly growing circumstances of Chinese financial market,numbers of hedge funds that use quantitative method are relatively small.They compose a small portion of market shares,as well as lack of various investments strategy.However,when look into the progress of quantitative hedge funds in the world,Chinese funds have the bright future.Furthermore,growing numbers and turnover of financial derivatives in Chinese market give more envision to investors.China's quantitative hedging fund has stepped into a golden age.Chinese market is comparably different from European market.High retrieve,“Black Swan” events,political risk,unstable trading regulation,restriction on sell short,high premium,they all make important impact on fund's performance.Risk management ability plays a key role in hedge fund.Since quantitative hedge funds have been growing for ages,whether will it works in China remain doubt.Ability to control risks,to attain return,and to enhance assets under management,is the big obstacles of quantitative hedging fund.This research is based on cases of quantitative hedging fund A,using researches,statistics,cases study method to study three strategies of fund's risk situation by asset pricing model.Which dig into fund A's three schemes,analyzing fund A's operation process and trading risks as well as to collecting data from trading,in order to attain asset growing by adjusting risk management.This research is firmly based on Chinese market,including regulations and development of funds issued.In order to analyze fund A's condition.Collecting data and analyzing on risk management,operation process,cooperation of risk management team,strategy adaption and portfolio risk control of the fund.Finally give advices for fund A's risk management.Essay make summary on government policy,industry risk,market liquidity risk,daily operation risk,and extreme market condition.Also give advices to fund A for its risk management policy.Which help improve fund A's risk control practically.Other strategy funds will also benefit from this essay in risk management.