The Research On The Impact Of Quantitative Hedge Fund Scale On Its Performance

With the continuous development of China’s capital market,the investors grow more and more mature,and the scale of quantitative hedge fund management has also been increasing in recent years.As an important part of the fund market,it has attracted more and more attention from investors in recent years.There is no fund managers to pick stocks subjectively in the company of quantitative hedge fund.It establishes advanced mathematical models to replace human subjective judgment.Moreover,strictly enforcing procedural transaction would minimize investors irrational decision-making influenced by moods,to obtain a continuous,stable,above-average returns.By September 2021,it has grown to around 1.4 trillion.However,with the continuous increase of its scale,the investors began to pay more and more attention to the impact of the scale of such products on its performance.In the second half of 2021,this issue attracted much attention from the media and authority.In order to explore the relationship between the scale of quantitative hedge fund and its performance,this thesis selects the products of the quantitative hedge fund with different management sizes from 2019 to 2021 as sample data,of which selection models have maintained effective operation.Besides,in this thesis,it has adopted multiple regression methods for research.To prevent the mutual influence between the scale and performance,the company’s investment and the number of employees are selected as instrumental variables to conduct endogeneity test.At the same time,the heterogeneity of the fund manager’s working years,market turnover and fund allocation style is analyzed,and two conclusions are finally drawn.Firstly,the scale of quantitative hedge fund is positively correlated with performance.That is,the scale has a positive impact on performance.Secondly,the impact of quantitative hedge fund scale on performance will be different due to the fund manager’s working years,market turnover and fund allocation style.Through the above research conclusion,it has provided suggestions to investors who want to invest in private quant funds.That is,in addition to considering the scale influence,investors also need comprehensively consider the working experience of the fund managers,the fund allocation style,and the current market turnover situation,and then make the final investment decisions.