In addition, portfolio management and reconciliation tools need to be fully automated, with the ability to generate snapshot reports on demand. Once the execution algorithm has been designed, it is the job of the execution quantitative developer to build an interface to a prime broker that allows trades to be carried out. As with pricing, teams of PhDs often work on effective execution algorithms - in fact execution and signals have significant overlap. Execution/Orders: Once a trading strategy has passed any necessary backtesting and has gained sufficient theoretical performance, it is the job of the execution quants to build models for effectively getting the trades to the exchange without incurring too much slippage or transaction costs.This area is the job of the quantitative researcher or trader. All funds keep their cards extremely close to their chest so good strategies are rarely revealed. For systematic funds, they will often fall into the groups of trend-following, mean-reversion, statistical arbitrage or high frequency/market making. The strategies employed by hedge funds are extremely diverse.
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