Quantitative hedge funds are investment funds that use mathematical models and algorithms to make trading decisions. They analyze large sets of data to identify patterns and trends in financial markets, aiming to generate profits while managing risk. These funds often employ advanced technology and statistical techniques to execute trades quickly and efficiently. Unlike traditional hedge funds that rely on human intuition and market experience, quantitative hedge funds depend on quantitative analysis. They may invest in various assets, including stocks, bonds, and derivatives, and often utilize strategies like arbitrage and high-frequency trading to capitalize on market inefficiencies.