The predominance of large quantitative funds in the United States can be explained by several factors:
- Financial history and innovation: The United States has a long history of financial and technological leadership. Many investment and trading innovations have originated in the US, including the development of quantitative trading.
- Financial centers: Cities like New York and Chicago are major financial centers, attracting talent, innovation and capital.
- Education: The U.S. is home to many of the world's leading universities and research institutions, particularly in the fields of mathematics, statistics, computer science and finance. These institutions train and attract talent from all over the world, supplying the financial industry with highly qualified experts.
- Developed capital market: The US capital market is one of the largest and most liquid in the world, offering opportunities for diversified trading strategies.
- Entrepreneurial culture: American business culture encourages innovation, risk-taking and entrepreneurship, which can facilitate the creation and success of new financial ventures, including quantitative funds.
- Regulatory: Although the U.S. has strict financial regulations, it also has a long tradition of open and competitive markets, enabling the emergence and growth of innovative funds.
- Technological infrastructure: The U.S. has invested heavily in information technology and connectivity, providing the infrastructure for high-frequency trading and sophisticated quantitative analysis.
- Capital concentration: Large US-based institutional funds and accredited investors can provide the capital needed to launch and support large-scale quantitative funds.
That said, while the US is home to many large quantitative funds, other regions such as Europe and Asia also have significant players in the field. The global quantitative trading landscape continues to evolve, and it is likely that other financial centers will gain in importance in the future.
Take your algo trading strategies to the next level
Use our strategy database to develop quantitative strategies faster.
✔️ Research papers
✔️ Trading rules
✔️ Performance metrics
✔️ Python code
👉 Try our Database of Trading Strategies Now →
💡 Read more:
- Trading strategies papers with code on Equities, Cryptocurrencies, Commodities, Currencies, Bonds, Options
- A curated list of awesome libraries, packages, strategies, books, blogs, and tutorials for systematic trading
- A bunch of datasets for quantitative trading
- A website to help you become a quant trader and achieve financial independence