"2026 has so far resembled the worst parts of 2025 at many quant hedge fund managers. The beginning of the year had the worst stretch of losses since early October, according to a Goldman Sachs report, and several big-name managers did not avoid the pain. HSBC's Hedge Weekly report states that Renaissance Technologies' two largest funds lost roughly 4% each through January 9. A person familiar with Schonfeld said the manager's quant-only strategy was down 3.9% through January 16."
"Last year, systematic funds had several extended periods of losses, including a stint in June and July that one consultant described to Business Insider as " a long, slow bleed." Funds gradually recouped summer losses, but ran into trouble again in early October when crowded trades, a momentum sell-off, and inflated junk stocks led to drawdowns. While funds again rebounded from those losses, the average quant returned 7.7% last year, according to hedge fund research firm PivotalPath, less than the average fund and the S&P 500's 2025 gain."
"Quant funds have had a tough start to the year. The average quant started the year down 1%, according to Goldman Sachs. Managers such as Renaissance Technologies and Schonfeld have lost money in computer-run strategies."
Quantitative hedge funds began 2026 with notable losses, echoing the worst stretches of 2025. The average quant was down about 1% early in the year. Renaissance Technologies’ two largest funds fell roughly 4% through January 9, Schonfeld’s quant-only strategy declined about 3.9% through January 16, and Engineers Gate was down around 6% mid-month. Losses were concentrated in US stocks amid choppy markets following trade proposals from the Trump administration. Crowded trades, momentum sell-offs, and inflated junk stocks contributed to drawdowns. The average quant returned 7.7% in the prior year, lagging the S&P 500.
Read at Business Insider
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