In 2024, quant funds that thrived on market momentum faced volatility challenges, causing potential gains to vanish. Initially, markets surged with equities and commodities, but unpredictable shifts, especially in European equities and bond markets, led to disappointing outcomes. The Societe Generale SA index saw a minimal 2% rise, despite promising beginnings.
Highlighting key insights:
- Trend-following funds struggled as markets lacked sustained trends.
- Shift in key commodity trades and volatile currency markets added pressure.
- Despite setbacks, quant funds are valued for their diversification role.
As the financial landscape evolves, how will trend-followers adapt amidst shifting market trends? Share your thoughts!
For further depth: Bloomberg’s full article.
