Saturday, 30 July 2016
Last updated 7 hours ago
Oct 9 2013 | 10:27am ET
The difficult environment for quantitative hedge funds has claimed another casualty.
Sweden's Density will close, Reuters reports. The US$54 million will close by the end of the month, co-manager Jonas Vikstrom said.
"Performance has not been what we hoped for," Vikstrom, managing director of Vikstrom & Andersson Asset Management, told Reuters. "It's been quite bad, actually."
"We aim for a niche in the CTA space, but it's not working out well at all," he added. "We don't have the resources to continue fighting."
Density has lost 26.6% since the end of 2008, the year it debuted. The strategy is down 14.9% this year.
Quantitative funds have been battered this year as central banks and other policymakers have continued their easing strategies, wreaking havoc with hedge funds' computer models.