The father of quantitative analysis is Harry Markowitz, credited as one of the first investors to apply mathematical models to financial markets. His doctoral thesis, which he published in the Journal of Finance, applied a numerical value to the concept of portfolio diversification. Later in his career, Markowitz helped Ed Thorp and Michael Goodkin, two fund managers, use computers for arbitrage for the first time.

Several developments in the 70s and 80s helped quant become more mainstream. The designated order turnaround (DOT) system enabled the New York Stock Exchange (NYSE) to take orders electronically for the first time, and the first Bloomberg terminals provided real-time market data to traders.

By the 90s, algorithmic systems were becoming more common and hedge fund managers were beginning to embrace quant methodologies. The dotcom bubble proved to be a turning point, as these strategies proved less susceptible to the frenzied buying – and subsequent crash – of internet stocks.

Then, the rise of high-frequency trading introduced more people to the concept of quant. By 2009, 60% of US stock trades were executed by HFT investors, who relied on mathematical models to back their strategies.

HFT volume and revenue has taken a hit since the great recession, but quant has continued to grow in stature and respect. Quantitative analysts are highly sought after by hedge funds and financial institutions, prized for their ability to add a new dimension to a traditional strategy.