(Hedge Co.Net) Quantitative hedge fund Engineers Gate has quietly delivered around a 12 % return as of May 2025, marking a meaningful rebound after prior years of underperformance. Business Insider The fund now manages over US $4 billion and has expanded its team to more than 75 portfolio managers.

After struggling in 2020 and beyond, the firm’s resurgence reflects a strategic pivot: alongside quant strategies, Engineers Gate has broadened into fundamental investing and expanded its geographical footprint with an office in Singapore. Business Insider The performance comes in a year when many hedge funds are just achieving mid-teens returns—thus a double-digit performance for a quant fund is noteworthy.

Why this matters: Quant hedge funds often rely on trend-following or statistical arbitrage, which in 2025 have faced headwinds (for instance, systematic trend-following funds are down ~10% YTD). Reuters+1 Engineers Gate’s ability to deliver positive double-digit results points to adaptability in strategy and execution.

For investors, the key takeaway is that quant funds may recover their footing and deliver meaningful returns again—if they evolve. Yet risks remain: quant models depend on data integrity, model robustness, and market regime stability. Rapid expansion also brings operational challenges.

Looking ahead: Can Engineers Gate maintain momentum through H2 2025? Will its hybrid quant + fundamental approach outperform more traditional quant peers? Monitoring its capacity growth, fee structure, and portfolio turnover will be important to assess sustainability.