Former Macquarie Group Ltd quant hedge fund chief Nick Bird is preparing to launch a Europe-focused strategy at his OQ Funds Management firm, as assets under management surpass $1bn, according to a report by Bloomberg.

Bird, who is based in Hong-Kong, said model testing for the new fund began in September, with a fourth quarter launch targeted, subject to ongoing R&D. The strategy is expected to accommodate up to $600m in initial capacity. OQ’s existing Asia and Japan funds are currently at capacity.

The former quant chief previously oversaw a $2.8bn multi-regional quant platform at Macquarie before its closure in 2018, which he attributed in part to rapid expansion and excessive asset growth during a challenging regime for value-oriented systematic managers.

Founded by Bird in 2020, OQ’s flagship Asia fund has delivered annualised returns of more than 12.4% through January, outperforming the MSCI Asia- Pacific Index with lower volatility.

Bird, said Europe’s single-currency framework and fewer structural idiosyncrasies should allow the new strategy to be more automated, with less than 10% of trades requiring discretionary input. Back testing has also indicted stronger model performance relative to Asia.

The launch comes amid renewed allocator demand for quant strategies, which a January report by Goldman Sachs Group inc, identified as the most sought-after among hedge fund investors.

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