Sunday, 28 December 2014
Last updated 3 hours ago
Jun 7 2013 | 11:36am ET
Betting on an end to the U.S. Federal Reserve's quantitative-easing program is proving painful for a number of quantitative hedge funds.
Some of the most prominent were caught out by the recent global bond sell-off, fueled in part by the Fed's refusal to taper off its bond-buying. "Since mid-May it has been a perfect storm of some of the biggest market trends in the markets reversing all at once," one quant manager told the Financial Times. "It has been particularly brutal."
Among the hardest hit was Man Group's flagship AHL program, which lost 11% over the past two weeks, contributing to its worst month in a decade. Other quants nursing losses include Aspect Capital, which lost 6.4% in May, and BlueCrest Capital Management's BlueTrend Fund, which fell 4.4% through May 24.
Graham Capital fell 3.9% on the month, Transtrend 3.1% and Winton Capital Management 2.5%—the latter's decline entirely attributable to losses on U.S. bonds.
Dec 1 2014 | 10:21am ET
As 2014 winds down, Northern Trust Hedge Fund Services executives took some time to share their outlook on trends facing the industry in 2015. Read more…
Jeff Sprecher was simply looking for a platform to trade energies when launching ICE 14 years ago but it has grown to reach the pinnacle of both the listed futures and equities world.