This is all just out of curiosity but... assume I had a four year track record live trading with Quantopian with very good returns. Logistically, would it be possible to run, say, a $200,000,000 hedge fund using Quantopian? Could I start my own hedge fund and use Quantopian to trade investors money?
Hi Owen,
The short answer is yes, you can run a fund strategy using Quantopian today (or in 4 years).
I’m comfortable saying yes because we have been trading both internal and external capital every day for nearly 2 years. This includes individuals and small professionals trading their own brokerage accounts, allocations made through the Quantopian Open paper trading competition (totaling about $600k) and more recently through internal proprietary trading accounts.
I’d also encourage you check out the crowd-sourced fund we’re building at Quantopian. We are actively evaluating strategies with as little as 6 months of out of sample real money or paper track record for allocations. If you receive an allocation from Quantopian you license your algorithm to us and get paid a competitive quarterly AUM based performance fee. We think this arrangement is going to be extremely compelling to folks looking to get into the business since it offers a path to fee-based revenue and track record with zero startup costs (legal, operational, registration etc.) for the quant. Would love to hear any feedback you have if you check this option out.
Best, Jess
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Hi Jess,
I recall your mentioning that Q would eventually move to a so-called "prime broker" for its hedge fund. My understanding is that at $200M, Interactive Brokers would not be the best choice. So, would you offer prime broker access to all users? I'm just trying to reconcile my understanding (based on comments from others with experience in the industry), that at a minimum, you'd need a different broker. Also, in general, the Q platform wouldn't seem like a good fit for a $200M fund (but maybe at a lower capital level). What is your largest account?
Grant
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The material on this website is provided for informational purposes only and does not constitute an offer to sell, a solicitation to buy, or a recommendation or endorsement for any security or strategy, nor does it constitute an offer to provide investment advisory services by Quantopian.
In addition, the material offers no opinion with respect to the suitability of any security or specific investment. No information contained herein should be regarded as a suggestion to engage in or refrain from any investment-related course of action as none of Quantopian nor any of its affiliates is undertaking to provide investment advice, act as an adviser to any plan or entity subject to the Employee Retirement Income Security Act of 1974, as amended, individual retirement account or individual retirement annuity, or give advice in a fiduciary capacity with respect to the materials presented herein. If you are an individual retirement or other investor, contact your financial advisor or other fiduciary unrelated to Quantopian about whether any given investment idea, strategy, product or service described herein may be appropriate for your circumstances. All investments involve risk, including loss of principal. Quantopian makes no guarantees as to the accuracy or completeness of the views expressed in the website. The views are subject to change, and may have become unreliable for various reasons, including changes in market conditions or economic circumstances.