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Quant Fund
Term category: Mutual Funds
In 10 words or less: A type of mutual fund or hedge fund that uses quantitative measures to pick stocks.

Definition: Quant funds use lots of math to decide what stocks to invest in.  The portfolio managers tend to have math backgrounds, as opposed to finance and accounting degrees.

StockJargon Advice: Quant funds are thought to have a smaller correlation with the stock market because they avoid the "herd mentality" of qualitative analysis.  However, their returns haven't been extraordinary over the years.  Nonetheless, they may be an attractive way for you to diversify your portfolio.

Many quant funds invest using a long-short strategy, which involves going long on one good company and short selling a poor company in the same industry.

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