Family Offices Snub Hedge Funds for Quant Bets, Citi Banker Says

Family offices with at least $1 billion in assets are increasingly choosing quantitative trading strategies as a cheaper alternative to hedge funds, a Citigroup Inc. executive said.

“A lot of family offices think hedge funds are too expensive,” and are instead opting for systematic strategies as a less costly way to protect against market swings, said Hannes Hofmann, global head of the bank’s Family Office Group. “What’s particularly interesting for family offices today is the hedging opportunity.”

Hannes Hofmann

Source: Citi

Using technology and quant formulas to automate investment processes has been a powerful force on Wall Street and other financial hubs ...