Machines Beat Humans in Hedge Fund Quest to Time Market Bottom
- Quants only hedge fund group to boost stock holdings in 2016
- Slow-moving hedge funds miss out on energy stock rally
Game of chess in black and white
Photographer: Erik T Witsoe/Getty Images/Flickr RFThis article is for subscribers only.
In a historically bad year for hedge funds, one of their close relatives is thriving.
Computer-driven quants, which pick shares based on factors like momentum and size, have been the only hedge fund category to buy additional stock in 2016, data from Credit Suisse Group AG show. The move paid off as the S&P 500 Index crept within striking distance of all-time highs, while hedge fund managers were busy unloading shares.