Quants tackle hedge fund operational risk
Operational due diligence is considered more art than science but efforts to measure operational risk systematically are gaining traction with the development of quant models and scoring systems
Over the past three decades, the investment world has been transformed by an army of mathematicians, physicists and computer scientists using sophisticated quantitative techniques to play the markets.
Nowhere is this more apparent than in the hedge fund industry, which has embraced quantitatively driven strategies such as statistical arbitrage and managed futures.
Investors have also had to adapt. The best funds of hedge funds (FoHFs) have developed an array of sophisticated quantitative scoring
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