Latest news with #QubeResearch&Technologies
Business Insider
5 days ago
- Business
- Business Insider
'A long, slow bleed': Quant hedge funds are getting slammed and scrambling for answers
Quant hedge fund managers are experiencing one of the most prolonged droughts in recent memory. The bigger concern: They don't know why. Systematic hedge funds have suffered a steady decline since June that managers are struggling to wrap their heads around. Quant executives, portfolio managers, and headhunters working in the space told Business Insider that the turmoil has hit most of the industry, generating concern and intrigue about the source of the pain. "It kinda crept up on everyone as there weren't many disastrous days, but it's been small loss after small loss," said one executive at a quant trading firm, who wasn't authorized to speak publicly. "No one seems to know why this is happening." Qube Research & Technologies, the $28 billion quant firm started by former Credit Suisse traders, has lost 5% in July in its flagship fund through last Friday, a person close to the manager said. The manager's larger Torus fund is down 7% in July, but both strategies are still up double-digits on the year. Point72's Cubist unit has experienced one of its worst stretches since the pandemic slammed global markets in March 2020, two people familiar with the firm said. Two Sigma's Spectrum fund is down roughly 2% this month through the end of last week, a person close to the manager said. At Man Group, the firm's AHL Dimension fund — a multi-asset systematic strategy — was down 2.5% in July through Tuesday, according to the London-based manager's website. Renaissance Technologies' largest external fund was down close to 6% in June, according to HSBC's Hedge Weekly report. These firms declined to comment or did not immediately respond to requests for comment. From the start of June through this Tuesday, equity quant managers lost 4.2%, according to a report from Goldman Sachs' prime services unit. The losses, driven by US equities, are the worst run of performance for systematic long-short strategies since a sharp drop at the end of 2023. Quant distress doesn't necessarily signal broader market trouble, but severe losses can spill over — especially if a large firm dumps positions and sparks contagion. The S&P 500 is up nearly 8% since June, and the VIX — a measure of volatility — is at its lowest point since February. Other prominent hedge fund strategies, including fundamental equity and multi-strategy, have steadily gained over the same period, the report said. Luckily for the quant space, it had been a strong year performance-wise until summer began, so the sector's annual returns are still, on average, outpacing their human rivals. A hallmark of statistical arbitrage, a classic quant trade that wields mathematical models to exploit short-term pricing inefficiencies across large baskets of stocks, istaking positions poised to pay off regardless of broader market swings. It has periodic slumps like any other trade, but they tend to be sharp and quick. Major drawdowns often last just a couple of days and stem from a large player liquidating a portfolio or reducing market exposure. Overcrowding can exacerbate losses, as it did during the so-called Quant Quake, in which systematic hedge funds such as Goldman Sachs' famed quantitative division suffered heavy, sudden losses in August 2007 while the rest of the market rallied. What's unusual this summer, industry sources say, is the accumulation of small losses over weeks. "Everyone says it's different this time — different because of duration," said a hedge fund consultant who works with large quant funds. "This has been a long, slow bleed across the complex." That pattern isn't consistent with a large liquidation and its aftershocks, though losses so far this week have been more intense, including a 0.6% decline on Tuesday, according to Goldman Sachs. The Goldman report said drivers included the sell-off of momentum strategies that bet rising stocks will keep rising; the rally in speculative, high volatility stocks; and "some unwinding of crowded trades." Intense losses could quickly pile up if sizable funds start cutting their exposure. "It's survival of the fittest, basically," said one quant trader at a multi-billion-dollar manager. "Who is going to have the stomach to ride this out and stick to their bets?"
Yahoo
19-04-2025
- Business
- Yahoo
Why Trump Media & Technology Group (DJT) is Skyrocketing?
We recently published a list of . In this article, we are going to take a look at where rump Media & Technology Group Corp. (NASDAQ:DJT) stands against other other firms that ended the week strong. The stock market ended the shortened trading week mixed, with two of the major indices clocking in just modest movements, as investors parked funds for now while continuing to digest President Donald Trump's tariff policies. Among the major indices, only the S&P 500 registered gains, up 0.13 percent. In contrast, the Dow Jones fell by 1.33 percent, and the Nasdaq dropped by 0.13 percent. Ten firms, on the other hand, ended the week strong, on the back of a flurry of catalysts that sparked buying appetite. In this article, we have detailed the reasons behind their gains. To come up with the list, we only considered the stocks with a $2 billion market capitalization and a $5 million trading volume. Trump Media & Technology Group saw its share prices jump by 11.65 percent to close at $22.04 apiece as investors bought up on a short seller's recent buying surge in the company. Earlier this week, short seller Qube Research & Technologies disclosed a net buying position of around $105 million in DJT, prompting the latter to ask the Securities and Exchange Commission to investigate the shorting, claiming 'potential manipulation.' In a memo released on Thursday, DJT asked the SEC to 'immediately investigate this suspicious trading and report your findings back' to the company. In its defense, Qube said its short-selling positions were based on its quantitative model and not on the company's fundamentals. Earlier this week, DJT joined forces with two investment firms to launch Truth Social-branded Separately Managed Accounts, expected to 'offer investors access to curated, thematic investment strategies rooted in American values and priorities.' According to DJT, the lineup of portfolios will include strategies based on the themes of faith and values, liberty and security, energy independence, and made in America. Overall, DJT ranks 3rd on our list of firms that ended the week strong. While we acknowledge the potential of DJT as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than DJT but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey. Sign in to access your portfolio
Bloomberg
27-03-2025
- Business
- Bloomberg
Ex-Paulson Partner Restarts Hedge Fund With Qube Among Backers
Orkun Kilic, who shuttered his hedge fund more than a year ago, is relaunching with money from clients including one of the largest multistrategy investment firms. His London-based Berry Street Capital Management will start trading as soon as next month with capital from Qube Research & Technologies, one of two separately managed accounts it has secured, people with knowledge of the plans said. The accounts represent a combined $200 million commitment to Berry Street, one of the people said, asking not to be identified because the details are private.
Bloomberg
07-03-2025
- Business
- Bloomberg
Secretive Hedge Fund QRT Adds Another $5 Billion to Its Assets
Qube Research & Technologies, a secretive hedge fund that has grown into an industry giant, has added billions of dollars more to its assets so far this year. London-based QRT now manages about $28 billion, according to people with knowledge of the matter. That's $5 billion more than it had at the end of last year. The growth has come from a combination of billions of dollars in new cash as well as investment gains, the people said, asking not to be identified because details are private.
Bloomberg
13-02-2025
- Business
- Bloomberg
Secretive QRT Storms to Top 1% of Hedge Funds
London-based Qube Research & Technologies has grown quietly into a $23 billion trading powerhouse, all from modest origins as an $800 million spinoff from Credit Suisse just seven years ago. QRT's rapid rise is rewriting the narrative of what's possible in the bitterly competitive $4.5 trillion hedge fund industry. Nishant Kumar has more. (Source: Bloomberg)
