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Core Insights - Quantitative investment has become a key term in the market as A-shares experience fluctuations and a daily trading volume of 2 trillion yuan becomes the norm, with the number of quantitative product filings doubling year-on-year [1] - Square and Investment has celebrated its tenth anniversary, demonstrating the long-term effectiveness of quantitative methodologies in the Chinese market [1][2] - The founder, Lv Jieyong, emphasizes the goal of establishing a Chinese quantitative hedge fund akin to global leaders in the field [2] Company Development - Square and Investment was founded in 2015 amidst skepticism about the suitability of quantitative investment for the Chinese market, but has since proven its strategies effective [1][2] - The company has navigated through three major crises in the quantitative industry, using these challenges as opportunities for growth [3] - In 2018, despite a cooling investment climate, Square and Investment achieved double-digit positive returns, gaining industry recognition [3] Strategy Evolution - The company has maintained a consistent strategy framework while continuously iterating its approach to adapt to market changes [4] - Early reliance on price-volume factors has expanded to include fundamental analysis, analyst expectations, and alternative data, ensuring robust factor research [4] - The transition from linear models to machine learning-driven non-linear models has enhanced the company's capabilities [4] Risk Management and Performance - Square and Investment has developed a multi-dimensional risk management system, including industry and risk factor assessments, to mitigate event risks [4] - The proprietary Bsim system has significantly improved execution efficiency, reducing transaction costs [4] - The company has reported a 2.3 times increase in computational power this year, enabling extensive backtesting and research capabilities [4] Future Outlook - The company aims to continue its growth trajectory while maintaining excess returns, with current assets under management around 10 billion yuan [5] - The next decade will focus on becoming a global player in quantitative investment, supported by new talent and enhanced research capabilities [5][6] - The regulatory environment is shifting towards stricter management of high-frequency trading, which aligns with the company's focus on low-frequency strategies [5][6] - Square and Investment believes there is still significant research potential in traditional factors, advocating for incremental innovation rather than chasing trends [6]