4.21.2009

Quant Funds Underperform Value Funds

Value based hedge funds have been outperforming their quantitative counterparts this year as highly levered out of favor companies performed well in the first part of 2009. Meanwhile, momentum based quant funds have been hit hard as the biggest losers in recent months, banks and other financials, actually outperformed. In fact, quant momentum funds posted their worst returns in 15 years in March, losing more than 25%.

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