First, we hear about trend-followers doing badly. Then, value investors. Now, the nerdy quants. All these happening in one of the longest bull markets in U.S history. As a retail investor, I look up to these hedge fund managers and like to read books and watch videos about them. I sincerely think they are smarter than me, hence I actively hear them out when they give interviews.
AQR is known to be one of the top quant funds. The Equity Market Neutral fund is down 6.9% year to date 2019. Did I read wrongly? I thought the U.S equity market just had one of the strongest quarter in history. Cliff Asness is one of the quant managers that I like to listen.
Can the elitetraders here share their insights what has gone wrong when even highly intelligent, passionate people are doing badly in a BULL market?!
https://www.bloomberg.com/news/arti...id-to-liquidate-its-1-billion-quant-portfolio
BlueMountain Capital Management is liquidating its $1 billion computer-driven portfolio, as it shifts back to focus on its roots: human-run fixed income and credit.
The systematic portfolio gained 4.4 percent last year, Vogel said. It fell about 1 percent in 2017, according to one of the people.
Quant hedge funds have struggled from lackluster performance, investor withdrawals and rising costs. Systematic trading funds lost 3.6 percent in April, Goldman Sachs Group Inc. said in an April 26 note. That’s the worst month since January 2015 when the bank started tracking the data. The losses were spurred by funds crowding into wagers against stocks and momentum trades or betting on short-term market trends.
Among quant fund losers last month was AQR Capital Management’s Equity Market Neutral Fund, which slumped 4.8 percent in April and 6.9 percent this year, according to its website.
