Core Insights - The changing market environment and style preferences have created abundant trading opportunities and excess return potential for quantitative strategies, while increasing the difficulty of stock selection for subjective strategies, leading to greater performance divergence [1][5][7] Group 1: Market Performance - As of August 2023, the number of registered private equity securities products has increased by over 80% year-on-year, with a total of 7,907 products registered [2] - The number of quantitative private equity products has also surged, with 3,584 products registered, accounting for 45.33% of total registered products, representing a year-on-year growth of 100.34% [2] - The average return for 57 billion private equity firms this year is approximately 24.99%, with over 70% of these firms achieving returns exceeding 20% [2][4] Group 2: Quantitative vs. Subjective Strategies - The average return for 37 billion quantitative private equity firms is 28.07%, with all firms showing positive returns [3][4] - Despite a significant rebound in the A-share market in August, quantitative strategies continue to outperform subjective strategies [2][3] - Subjective strategies are facing challenges due to rapid market rotations and increased stock selection difficulty, resulting in noticeable performance divergence [7] Group 3: Factors Driving Quantitative Success - The performance of billion quantitative private equity firms is attributed to the wide fluctuations in the A-share market, accelerated industry rotations, and the dominance of small-cap styles, which provide rich trading opportunities [5][6] - The rapid development of artificial intelligence and big data technologies has significantly enhanced the performance of quantitative strategies, allowing for more precise capture of excess returns [6] - The liquidity in the A-share market, with trading volumes consistently above 1 trillion, has created favorable conditions for the implementation of quantitative strategies [6][8] Group 4: Strategic Recommendations - For subjective private equity firms, focusing on in-depth research and flexible adjustments is recommended to navigate the complex market environment [8] - Quantitative strategies should optimize models to adapt to potential style shifts and enhance the application of AI and big data technologies in stock selection and trading execution [8][9] - The "subjective + quantitative" model is emerging as a new growth avenue, combining active management with quantitative investment to achieve absolute return goals [9]