Quantitative private equity industry welcomes a new round of research, focusing on the application of AI models, etc.

Reporters recently exclusively learned that regulatory authorities have started a new round of research on some top quant hedge funds. This research focuses on the overall operation of quant strategies in the current market environment, including changes in profitability and drawdown in different market environments, the main sources of excess returns, and the overall performance and response to pressure from redemptions on the liability side in 2024. On the other hand, the use of AI models in quant strategies is of particular concern, including whether they face the problems of interpretability and uncontrollability of risks brought by the black box of AI algorithms, the typical manifestations of "illusion" risks in asset allocation scenarios, and how to control such risks.