A Quant fund is a hedge fund that uses statistical techniques, mathematical modeling, and automated algorithms, rather than fundamental analysis and human judgment, to make investment decisions and execute trades. Much has been written about Quant funds over the past few years and far from being complex the methodology behind a Quant fund is relatively straightforward.

Hedge funds are investment firms that use complex strategies and other forms of hedge fund management to generate returns for their investors. They are different from traditional investment funds that invest in stocks and bonds, and they are less regulated and much more opaque. This opaqueness is by design because many Hedge Funds are based offshore for tax and secrecy purposes.

Hedge funds are usually based offshore for tax reasons and secrecy. They are not suitable for ordinary retail investors, but there are still some hedge funds that are accessible through retail - oriented hedge fund exchanges, such as those that trade shares of public investment firms. By investing in a hedge fund holing company or overall corporate entity an individual investor may be able to see some exposure to the gains of the fund without directly investing in the offshore

Hedge funds typically look not for the average person buying shares in an investment fund, but for a limited partnership that builds up a large amount of capital. Fund managers invest in funds before they launch them to build investment portfolios. When a fund manager performs exceptionally well and delivers excellent returns, the funds attract large institutional investors who can invest a significant amount of capital.