SINGAPORE (Feb 7): As equity markets have tumbled in response to the spread of the coro­navirus from China, fund managers are probably worried about the per­formance of their respective funds. But not so for Quantedge, a homegrown hedge fund that employs quantitative strategy to seek supernormal returns.

Suhaimi Zainul-Abidin, CEO of Quantedge, says the company’s sole hedge fund, which is available only to accredited investors, is re­calibrated on a daily basis. In particular, its quantitative model informs when the portfo­lio should reduce its exposure to certain secu­rities in response to market volatility and by how much. This is done to keep the portfolio at a certain risk level, he says.

“So there is no emotion to it,” he tells The Edge Singapore in an interview. “We will nev­er have a situation where somebody thinks that we are at the bottom of the market, and therefore wants to double up [exposure to a particular security] … Only when the market volatility comes down, then the model will tell us to scale up our positions again.”

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