Posted 3/25/2024, 7:09:00 AM
Systematic Hedge Funds Outperform with Computerized Strategies in Volatile Markets
- Systematic hedge funds that use algorithms and coding outperformed peers in Q1 2024, returning almost 9% vs 2.6% for the industry
- Their success was due to volatile markets and diverging global fortunes - U.S. stocks rose while Hong Kong fell
- Top performing systematic funds took on more risk, averaging 20% returns
- Long cocoa trades were a major driver of returns as prices doubled over the past year
- While fixed income has been trickier, trends in stocks, commodities like cocoa, and currencies benefited systematic strategies