The World According to Quants: Enter Alpha Generation Platforms

Boston, MA, July 9, 2008 – A new report from Aite Group, LLC looks at the emergence of alpha generation technology platforms, designed to create a more centralized and streamlined process and functionality, vastly improving the overall productivity of quants. Based on product demonstrations provided to Aite Group, the report profiles five alpha generation technology platforms and compares their market presence, functionality and asset class coverage, among other items.

With a notable increase in the total number of quantitatively driven funds in recent years, the pressure to come up with the next big quant model has grown exponentially. Given the fact that certain short-term strategies only remain effective for three to four months, rapid construction and implementation of alpha models has become much more urgent. Unfortunately, today's market reality is littered with disparate, homegrown third-party applications tied together only by the creativity of the quants. As competition in the quant world continues to increase, demand for an all-encompassing platform designed to reduce development errors and time to market is destined to grow dramatically. Those quant firms able to implement a highly efficient process for alpha discovery will gain a significant competitive edge for years to come.

"The demand for alpha generation platforms clearly exists in the hedge fund community as funds continue to battle fiercely to capture additional alpha in an increasingly crowded marketplace," says John Jay, senior analyst with Aite Group and co-author of this report. "However, with the concept of quantitative investment analysis expanding into the mainstream investment arena, the need for a single platform to streamline the overall work flow will increase even more among traditional asset managers."

This 40-page Impact Report contains 14 figures and three tables. It profiles and compares the alpha generation technology platforms offered by 4th Story, Alphacet, ClariFI, Deltix and QuantHouse. Clients of Aite Group's Institutional Securities & Investments service can download the report.