Recently, I discussed some fundraising situations for quantitative funds. The most impressive one was a strategy focused on Aerodrome liquidity market making, with an annualized return of over 60%. More importantly, this scheme experienced virtually no significant drawdowns, and risk control was quite solid.

Because the fundraising party could control the risk, they took a substantial share of the profits, taking 45% of the returns, leaving the LP with just over 30% annualized. Honestly, this number is still quite good in the current market.

On the other hand, arbitrage strategies in the market are quite interesting. Many quantitative teams doing arbitrage only earn about 10 or so percentage points per year, and reaching 20% is considered quite good. The gap is so large—on one side, the liquidity advantage and clear profit model of market making; on the other, the arbitrage space itself is narrowing year by year.

I’d like to hear your thoughts on this—have you come across reliable quantitative strategies? Especially those that can consistently generate good returns while keeping drawdowns manageable. Have these types of strategies become more competitive in the past two years?