5 Biggest Quant Funds in The World

4. Citadel Advisors

Kenneth Griffin’s Chicago-based hedge fund Citadel Advisors is managing $234 billion of assets under management and its 13F portfolio market value came in at $352 billion at the end of the September quarter. Its investment approach is based on combining vigorous research and advanced quantitative analysis to deliver consistent investment results.

The hedge fund is seeking to make several changes in its stock portfolio to capitalize on profit-making opportunities. It had initiated a position in 1620 stocks during the third quarter and exited stakes from 1308 stocks.

Amazon (NASDAQ: AMZN) is one of Kenneth Griffin’s favorite stock investments and it appears that the firm has benefited from its AMZN position. Several other hedge funds are also bullish on Amazon. L1 Capital International Fund, which has generated more than 5% return in the third quarter, highlighted few stocks including Amazon in an investor’s letter. Here’s what L1 Capital stated:

“Several investments in the technology sector were trimmed on valuation grounds with the proceeds used to increase our investment in Amazon. Amazon’s successful flywheel business model and Amazon Web Services are well known. However, we believe the current share price under‑appreciates:

– The consistency and longevity of Amazon’s growth potential in its key businesses;

– The importance of additional revenue streams such as advertising which are high margin and growing rapidly; and

– The strengthening barriers to competition and competitive advantages arising from Amazon’s stepped‑up investment in logistics and other infrastructure.”