Quants in Utopia? Quantopian and Its Crowd Wisdom Hedge Fund Model
The case describes how Quantopian, a Python-based trading-algorithm development and backtesting platform, leverages its community of quantitative traders ("quants") to develop a novel crowdsourced hedge-fund model. The case provides an overview of the existing hedge-fund industry and illustrates a few potential issues to be addressed by startups. The case also introduces crowdsourcing as a novel business model and its applications in the emerging financial-technology ("Fintech") field. The instructor can connect the case to the fundamental design of organizations based on contractual arrangements and how exactly a crowdsourcing model challenges conventional wisdom about organizing business activities. The instructor can also stimulate a discussion on alternative growth models or strategies for Fintech startups, such as Quantopian, and practical solutions to challenges.