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Wall Street Built a $370 Billion Business Cloning Quant Trades

The world's largest banks, including JPMorgan Chase & Co., Goldman Sachs Group Inc., and Morgan Stanley, have created a booming business churning out imitation quant trades known as quantitative investment strategies (QIS). These trades replicate strategies pioneered by Ivy League academics and systematic fund managers like AQR Capital Management. QIS trades come with a handbook about exactly how they work, making them transparent and cheaper than most money managers. However, skeptics point out that banks don't have a fiduciary duty in the same way a money manager does. Despite this criticism, assets run by QIS have grown an average of 3% annually over the last six years to reach about $370 billion by mid-2022.

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