Quant funds trail pack in third quarter

Discussion in 'Professional Trading' started by ASusilovic, Dec 3, 2007.

  1. From FinancialNews-US.com: Quantitative fund managers, including US-based Renaissance Technologies and Analytic Investors, were among the worst-performing managers in US equities in the third quarter. Jim Simons’ Renaissance Equities Institutional Fund, launched in 2005, returned -3.2% in the third quarter against a return of 2% for the Russell 1000 index, according to data compiled for Financial News by investment consultant Mercer.

    Over 12 months to the end of September, the fund returned 8.3% against 17.2% for the index. When the fund was launched, Renaissance claimed it could handle up to $100bn (€68bn) in assets. Another quantitative firm, Los Angeles-based Analytic Investors, which is part of UK-listed financial services group Old Mutual, was also at the bottom of the universe, making a return of -3.2% in the quarter.

    Quantitative managers, which rely on computer models to make market bets, experienced extreme volatility in August when a few large funds started liquidating positions. The best-performing US equity fund was Wellington Management’s focused equity fund, which made 10% in the third quarter. In global equities, AQR Capital Management, the Connecticut-based quantitative fund manager, returned -1.3% in the quarter...

    http://www.financialnews-us.com/?page=ushome&contentid=2349304331