Family offices with at least $1 billion in assets are increasingly choosing quantitative trading strategies as a cheaper alternative to hedge funds, a Citigroup Inc. executive said.
“A lot of family offices think hedge funds are too expensive,” and are instead opting for systematic strategies as a less costly way to protect against market swings, said Hannes Hofmann, global head of the bank’s Family Office Group. “What’s particularly interesting for family offices today is the hedging opportunity.”