On Feb. 23, The Wall Street Journal reported that the Terraform Labs bankruptcy administrator has filed a lawsuit against Jane Street Capital, accusing the New York-headquartered quantitative investment firm of insider trading and hastening the collapse of the crypto firm. Founded by Do Kwon in 2018, Terraform Labs was once one of the leading crypto companies. But the project's twin cryptocurrencies, TerraUSD and LUNA, collapsed in 2022 and even led to investor losses worth an estimated $40 billion. Th ...

Core Insights - The article highlights the impressive returns of Fantom Quantitative, which achieved an average return of 56.55% in 2025, ranking second among quantitative private equity firms in China, only behind Lingjun Investment with a return of 73.51% [1] - Fantom Quantitative's average return over the past three years is 85.15%, and 114.35% over the past five years, providing substantial funding support for DeepSeek's large model research [2] - Founded in 2015 by Liang Wenfeng, Fantom Quantitative focuses on AI quantitative trading and has a current management scale exceeding 70 billion yuan, maintaining a leading position in the domestic private quantitative investment sector [2][3] Company Overview - Fantom Quantitative has a team composed of award-winning mathematicians, physicists, and experts in AI, employing interdisciplinary collaboration to tackle challenges in deep learning, big data modeling, and quantitative analysis [2] - The company has been utilizing machine learning for fully automated quantitative trading since 2008 and has expanded rapidly since its inception [2] - Significant investments were made in AI training platforms, with "Firefly No. 1" established in 2019 and "Firefly No. 2" in 2021, leading to the establishment of DeepSeek in July 2023 [3] Financial Performance - Liang Wenfeng holds a majority stake in Fantom Quantitative and has ceased to introduce external funding for the fund, indicating a strong accumulation of capital for supporting large model research [4] - The strong performance of Fantom Quantitative is estimated to have generated over 700 million USD in revenue last year, assuming a 1% management fee and 20% performance fee [4] DeepSeek Developments - DeepSeek's V3 model has a total training cost budget of 5.57 million USD, while competitors like Zhizhu and MiniMax have reported significant R&D expenditures [5] - DeepSeek plans to release its next-generation AI model, DeepSeek V4, around the Lunar New Year, which is expected to surpass current leading models in programming capabilities [5]

Core Insights - AQR Capital Management's multi-strategy product achieved a return of 19.6% in 2025, continuing its recovery trend despite a turbulent year for the quantitative investment industry [1] - The Apex fund, with $6.8 billion in assets, reported a 3% return in December, driven primarily by stock selection strategies [1] - The Adaptive Equities Strategy, part of the market-neutral strategies, delivered a notable 24.4% return in 2025 [1] Company Performance - AQR Capital Management, co-founded by Cliff Asness and based in Greenwich, Connecticut, experienced significant asset growth in 2025, with total assets under management reaching $189 billion [1] - The asset increase in 2025 was a record high, amounting to $75 billion [1] - The company has been known for its academically supported strategies, such as equity factors, but has increasingly incorporated proprietary and machine learning technologies in recent years [1]

Group 1 - AQR Capital Management's multi-strategy product achieved a return of 19.6% in 2025, continuing its recovery trend despite a turbulent year for the quantitative investment industry [1] - The Apex fund reported a 3% return in December, with a total of $6.8 billion in assets [1] - The Adaptive Equities Strategy, which is market-neutral, was the largest contributor to Apex's 2025 returns, generating a yield of 24.4% from a $6.3 billion market [1]

Core Viewpoint - Quantitative private equity has evolved from being perceived as a cold trading machine to a highly industrialized and sustainable profit-generating system [2][20]. Group 1: Performance and Profitability - The latest allocation results for the Sci-Tech Innovation Board's new stock, Moer Technology, show that Huanshan Quantitative secured 61,300 shares, amounting to approximately 7.0059 million yuan, with an IPO price of 114.28 yuan per share [3][21]. - The stock reached a peak price of 941 yuan per share, leading to a single share floating profit of approximately 826.72 yuan, resulting in a total floating profit of nearly 50.68 million yuan, over 7 times the initial investment [3][21]. - Even with a more conservative median price estimate of 700 yuan per share, the floating profit would still exceed 5 times the initial investment, amounting to approximately 35.90 million yuan [4][22]. Group 2: Advantages of Quantitative Institutions - The advantages of quantitative institutions in the Sci-Tech Innovation Board's new stock subscription are amplified due to the alignment of rules with quantitative systems [6][24]. - Huanshan Quantitative utilized around 160 products for the subscription, while other firms like Jiukun Investment and Ruanfu Investment also deployed a significant number of products, showcasing the scale of participation [6][24]. - The key advantage lies not just in the number of products but in the ability of quantitative institutions to maximize rule efficiency, particularly in account diversification and precise fund allocation [8][26]. Group 3: Company Strategy and Market Position - Huanshan Quantitative has adopted a low-profile approach over the past two years, reducing management scale while maintaining its position among the top private equity firms [9][27]. - The firm has chosen not to compete on scale but has demonstrated a clear upward trend in the net value curve of its representative products this year, outperforming peers in the quantitative sector [12][30]. - The self-operated investment capacity of top quantitative institutions is significant, often enjoying higher strategic priority and flexible risk budgets, which are less affected by external pressures [13][31]. Group 4: Integration of Quantitative Investment and Technology - The combination of quantitative investment and DeepSeek represents a powerful narrative, showcasing both a highly engineered financial system and cutting-edge AI technology [15][33]. - This integration signals a strong capability in the Chinese market to deconstruct and stabilize complex systems, indicating a new expression of strength for Chinese investment institutions on the global stage [17][35]. - The consistent performance of Huanshan Quantitative, where substantial returns appear as a natural outcome of system operations, reflects the industrialization of profit generation in investment [17][35].

Core Insights - Quantitative fund managers are professionals focused on quantitative investment, utilizing mathematical models, algorithms, and big data analysis to manage portfolios and create long-term value for investors [1] - The demand for quantitative talent has surged globally due to advancements in AI, leading to a "talent war" among quantitative institutions [1] - Quantitative private equity funds favor highly educated individuals, with 69.11% of quantitative fund managers holding master's or doctoral degrees compared to 56.42% in subjective private equity [1] Performance Overview - As of November, there are 1,637 quantitative products with a total scale of approximately 135.11 billion, achieving an average return of 27.29% from January to November, significantly outperforming the market [2] - Among the 99 billion-yuan quantitative fund managers, the average return is 34.42%, yielding an excess return of 14.04% [2] Performance by Fund Size - For funds over 100 billion: - 386 products with a total scale of 53.81 billion, average return of 34.42%, and excess return of 14.04% [2][3] - For funds between 50-100 billion: - 165 products with a total scale of 17.49 billion, average return of 25.23%, and excess return of 10.31% [2][7] - For funds between 20-50 billion: - 220 products with a total scale of 22.56 billion, average return of 26.62%, and excess return of 12.21% [2][10] - For funds between 10-20 billion: - 176 products with a total scale of 12.60 billion, average return of 25.37%, and excess return of 10.10% [2][12] - For funds between 5-10 billion: - 224 products with a total scale of 12.15 billion, average return of 25.75%, and excess return of 10.84% [2][14] - For funds under 5 billion: - 466 products with a total scale of 16.52 billion, average return of 23.88%, and excess return of 11.19% [2][16] Notable Fund Managers - In the 100 billion category, all fund managers achieved positive returns, with 31 out of 50 managers having returns over 30% [3] - Notable managers include Xu Jin and Wang Chen, both holding doctoral degrees, with significant product performance [3][5] - In the 50-100 billion category, top managers include Shi En and Huang Bo, with average returns of 25.23% [7][9] - In the 20-50 billion category, top managers include Mo Bo and Nie Shouhua, with average returns of 26.62% [10][12] - In the 10-20 billion category, Wu Yintong leads with a strong performance [12][14] - In the 5-10 billion category, Yan Xuejie and Zeng Shuliang are among the top performers [14][15] - In the 0-5 billion category, Xie Libo leads with a notable performance [16][17]

Core Viewpoint - The private equity index enhancement strategies have shown strong excess return capabilities in the first three quarters of this year, particularly among billion-level quantitative private equity managers, who leverage refined factor extraction and strict risk control systems to maintain their leading advantages [2][4]. Group 1: Performance Overview - As of the end of September, the average annual return of 231 billion-level quantitative private equity index enhancement products was 43.82%, with an average excess return of 14.89% [2]. - The quantitative stock selection and CSI 1000 index enhancement products led in excess returns [2]. - The average excess return for the CSI 500 index enhancement products was 10.71%, with an average drawdown of 4.44% [6]. Group 2: Top Performers - The top performers in the CSI 500 index enhancement category included companies like 顽岩资产, 鸣石基金, and 世纪前沿, showcasing strong excess return capabilities [5][6]. - 明汯投资's "明汯价值成长1期B号" and 蒙玺投资's "蒙玺中证1000指数量化5号A类份额" were highlighted as top products in the CSI 1000 index enhancement category [10][12]. - 龙旗科技's "龙旗科技创新精选1号C类份额" achieved the highest excess return in the quantitative stock selection category [14][16]. Group 3: Strategy Insights - The CSI 1000 index enhancement products are noted for their potential to exploit mispricing opportunities due to their large number of constituent stocks and low institutional coverage [10]. - The quantitative stock selection strategy, which relies on multi-factor models to identify stocks with expected excess returns, has shown an average excess return of 23.63% [14]. - The average return for quantitative stock selection products was 49.43%, with an average drawdown of 6.91% [14]. Group 4: Other Index Enhancements - Other index enhancement strategies, including CSI 2000 and national index enhancements, reported an average excess return of 14.92% and an average drawdown of 3.90% [17][19]. - Companies like 聚宽投资 and 微观博易 were recognized among the top performers in the other index enhancement category [17][19].

Core Insights - The article highlights the performance and growth of quantitative private equity firms in Beijing, noting that there are 620 products with a total scale of 43.43 billion yuan, achieving an average return of 9.80% in the first half of the year [2] - The article emphasizes the emergence of three new billion-yuan quantitative private equity firms in Beijing, bringing the total to ten [2][3] Group 1: Market Overview - As of June 2025, there are 147 quantitative private equity firms in Beijing, a decrease of 2 from the end of 2024 [2] - The average return for quantitative products in Beijing was 10.75%, with 253 products outperforming the average [2] - The top three quantitative private equity firms by employee count are Lingjun Investment (157 employees), Jiukun Investment (155 employees), and Inno Asset (110 employees) [3] Group 2: Performance Rankings - The top-performing quantitative private equity firms in Beijing for the first half of the year include Xinhong Tianhe, Tiansuan Quantitative, and Pingfanghe Investment [6] - Xinhong Tianhe achieved a significant return with its products, leading the rankings [8] - The average return for quantitative multi-strategy products was 16.20%, with the top five products coming from firms like Luxiu Investment and Baolite Asset Management [10] Group 3: Product Insights - The article lists the top quantitative multi-strategy products, with Luxiu Investment's "Luxiu All-Market Enhanced No. 1" leading the way [11] - The average return for quantitative CTA products was 5.25%, with the top product from Ruixin Tiansuan [14] - Xinhong Tianhe's "Xinhong CTA No. 1 Quantitative A Class" also ranked highly in the CTA category [16]

Group 1 - The core viewpoint of the article highlights that another quantitative private equity firm, Rianfu Investment, has announced a closure of new client subscriptions for certain index-enhanced products due to limited strategy capacity, effective July 1 [2] - Rianfu Investment's current scale has exceeded 70 billion, surpassing other quantitative giants like Kuangde [2] - The Rianfu Zhongzheng 500 index-enhanced series has shown a year-to-date return of approximately 8.2%, significantly outperforming the Zhongzheng 500 index, which has only increased by 0.25%, resulting in an excess return of around 8% [2] Group 2 - Rianfu Investment was established in July 2019 and focuses on quantitative investment, quickly entering the hundred billion private equity ranks within a year of launching its first product [3] - The firm has diversified its strategies across various indices, including 300, 500, A500, 1000, small-cap, and hedging [3] - In recent months, several hundred billion private equity firms have announced closures to control their scale and ensure returns, indicating a trend in the industry [4]

Core Viewpoint - The article highlights the increasing integration of AI in quantitative private equity firms in China, showcasing the significant advancements and performance improvements achieved through AI technologies in investment strategies [2][5][9]. Group 1: Company Developments - NianKong Technology has collaborated with Shanghai Jiao Tong University to submit a research paper on large language models, indicating its commitment to AI research [2]. - The company has established Shanghai QuanPin Siwei Artificial Intelligence Technology Co., Ltd. to focus on cutting-edge AI research [2]. - NianKong Technology has fully replaced traditional statistical arbitrage strategies with deep learning-based machine learning algorithms across all its stock strategy products [2]. Group 2: Performance Metrics - NianKong Technology's quantitative products have shown impressive performance, with an average return of ***% over the past year [2]. - Among the 15 billion AI quantitative private equity firms, 13 have reported products with performance data, achieving an average return of 29.91% over the past year [7]. - The average returns for these firms over three years and five years are 41.15% and 117.06%, respectively [7]. Group 3: Industry Trends - The number of billion-dollar quantitative private equity firms in China has reached 39, with 15 actively engaging in AI-related investments [3]. - The trend of integrating AI into quantitative investment strategies has been accelerated since the emergence of DeepSeek, a significant AI model in the industry [4]. - The application of AI technologies is seen as a key factor for survival and competitiveness in the quantitative investment sector [25].