Core Insights - The A-share market is characterized by frequent sector rotation, with the Shanghai Composite Index attempting to reach 3900 points amidst changing hotspots such as dividends, innovative drugs, and CPO [1][2] - Quantitative investment strategies are highlighted as a means to mitigate emotional trading and ensure precise execution of strategies through strict discipline and diversified portfolios [1][2] Market Dynamics - The A-share market's volatility is influenced by geopolitical factors, macroeconomic expectations, and short-term news, which can exacerbate market fluctuations and lead to emotional trading [2] - The number of listed companies in the A-share market has surpassed 5000, creating opportunities for information discovery and pricing discrepancies due to insufficient research coverage on certain stocks [2] Quantitative Investment Strategy - The core value of active quantitative funds lies in three aspects: scanning the entire market for stock selection, executing strategies with discipline to reduce subjective decision-making bias, and diversifying across hundreds of stocks to lower non-systematic risk [2][3] - Compared to traditional public fund index-enhanced products, the all-market quantitative stock selection strategy has fewer constraints, providing broader opportunities for excess returns [2][3] Excess Return Pursuit - The pursuit of excess returns is based on two key dimensions: the diversity of return sources to adapt to changing market conditions and a high degree of portfolio diversification to avoid significant volatility from betting on a single style or sector [3][4] - The use of a "multi-strategy" stock selection model supported by a technical framework allows for the construction of independent sub-models that integrate and optimize investment portfolios [3][4] Risk Management - Risk models are employed to control tracking error relative to benchmarks, ensuring that even if certain sectors or styles are favored in the short term, deviations remain within strict limits [4][5] - The multi-strategy model dynamically adapts to different market styles, avoiding significant volatility from a single model and smoothing overall portfolio performance [4][5] Market Environment for Quantitative Strategies - The current market environment, characterized by strong resilience and high trading activity, provides a conducive backdrop for the application of quantitative strategies [5][6] - Extreme market conditions, where funds may cluster excessively, could temporarily restrict the ability of quantitative strategies to achieve excess returns, but such conditions often contain strong mean-reversion dynamics that may create compensation opportunities in subsequent adjustments [5][6]