Quant hedge funds outperformed in volatile markets, with computer-driven traders thriving and adapting

The first half of 2025 saw Treasury market reversals and trade threats causing Wall Street upheaval. Despite market volatility, systematic hedge funds like Marshall Wace’s TOPS and AQR Delphi Long-Short Equity outperformed, with Voleon Composition gaining 12.8%. Quants thrived by trading on independent stock movements and are poised for further success.

Computer-driven stock traders are experiencing a renaissance in 2025, with strategies like momentum gaining traction. While momentum factors have been consistent, recent market shifts have led to a rotation into riskier assets, impacting quant performance. Despite challenges, quant strategies like AQR’s Adaptive Equity and Man Numeric Quantitative Alpha continue to deliver strong returns.

Quant trend followers faced challenges in 2025, with sustained momentum necessary for profit. Funds like the Systematica Bluetrend Fund and Man AHL Alpha experienced losses, while market rotation out of US stocks impacted quant performance. Despite these challenges, quant programs are adapting to evolving market conditions, with occasional human intervention necessary for managing risk.

Read more at Yahoo Finance: Quant Hedge Funds Ride Whiplash Markets to First-Half Riches