While literally everyone has spent most of this year recruiting, hiring and poaching quants to build the investing machines of the future, those machines are proving somewhat fallible. Meanwhile, a handful of meat sacks are showing that there’s still some life left in this declining species.
The average equity fund was up 9.7 percent while quant pools rose only 0.6 percent, according to Hedge Fund Research….
Light Street Capital Management’s Halogen fund, which focuses on technology, media and telecommunications stocks, soared 44 percent, said a person familiar with the matter. The flagship fund at Philippe Laffont’s tech-focused Coatue Management jumped almost 24 percent, according to an investor letter seen by Bloomberg News.
Computer-driven funds struggled to keep pace in the period. BlueTrend, the main fund at Leda Braga’s Systematica Investments, dropped almost 7 percent, another person said. The Diversified fund at $6.6 billion Aspect Capital fell 4.7 percent, according to an investor letter seen by Bloomberg News. Winton Group’s Futures fund is about flat on the year, according to a person with knowledge of the returns.