Core Viewpoint - The article emphasizes the importance of understanding the underlying logic of quantitative investment models to achieve stable excess returns in varying market environments [3][5][6]. Group 1: Evolution of Quantitative Investment - The article discusses the evolution of hedge funds, highlighting a shift towards quantitative investment as the primary method for generating alpha in the market [3]. - In China, quantitative investment is rapidly rising, with the E Fund's quantitative team integrating centralized and platform models to create a suitable development path [3][10]. - The E Fund's quantitative team has established a standardized workflow for data processing, enhancing efficiency across various stages of investment [5][25]. Group 2: Team Structure and Methodology - The E Fund's quantitative team is divided into factor groups and industry groups, focusing on statistical and fundamental quantitative models respectively, allowing for both collaboration and independent research [4][22]. - The investment philosophy of the team is driven by a logic-based approach, emphasizing the need to understand the underlying assumptions of models before application [8][18]. - The team aims to provide diverse sources of alpha, including stock selection and industry/style allocation, aligning with the goals of active equity teams [11][12][23]. Group 3: Performance and Strategy - The article presents performance metrics for E Fund's quantitative products, such as the E Fund High Dividend Quantitative Selection, which achieved a net value growth rate of 15.77% since its inception, outperforming its benchmark by 12.55% [6]. - The E Fund's quantitative models adapt to different market conditions, with the effectiveness of factors varying significantly based on economic environments [27][29]. - The team employs a combination of active and quantitative strategies to enhance performance, focusing on strict control of style exposure and leveraging market-specific characteristics [34][35]. Group 4: Future of Quantitative Investment - The article highlights the increasing role of AI in quantitative investment, with E Fund leveraging technology to enhance research efficiency and data processing capabilities [37]. - The company aims to develop a product line that meets the diverse needs of retail investors, focusing on clear and stable alpha generation [42]. - The article concludes that the stability of excess returns improves with a diversified approach to alpha sources, supported by the company's long-term commitment to building competitive advantages in the quantitative space [15][36].