Inside Red Cedar, a new quant hedge fund from Alexander Chernyy - Business Insider

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How this new hedge fund led by a former WorldQuant and Jefferies executive is uncovering new datasets to avoid the pain that hit quants in 2020

The goal of Red Cedar consistently on the cutting edge thanks to new datasets. The manager is working ExodusPoint'sChris Petrescu's new company CP Capital to source new datasets that are not already in use by other players in the space.

The firm plans to research and test 50 datasets by year-end and hopes to use 35 of the datasets producing alpha in their portfolio by 2022's start — with the near-term goal of having both datasets in the portfolio and assets double every year.Chernyy, who came to the States to work DE Shaw, ran WorldQuant's Moscow and St. Petersburg teams of roughly 35 people when he worked Igor Tulchinsky, and his new fund plans to tap into talent in his home country.

Chernyy said the goal is to have "anything that can be outsourced should be outsourced," including research, though he will lead the research efforts from Stamford, Conn. "We want to take advantage" of the cheaper labor and untapped potential in these countries, he said. The missions statement, Chernyy and Dean reiterated several times, is to not take the easy trades and focus on building a portfolio that can't be found anywhere else.

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