Category: Hedge Funds & Absolute Return
Summary Quantitative hedge fundsโparticularly those operating under multi-strategy or factor-driven mandatesโhave underperformed in 2025 despite favorable market conditions. This underperformance appears structurally linked to overcapitalization, signal degradation, and reduced market inefficiencies. This memo outlines the key drivers of recent quant losses, examines broader systemic concerns across the hedge fund landscape, and provides a research-backed allocation [...]