- Algorithmically driven hedge funds are buying US equities at one of the fastest rates in a decade.
- Quant funds have been piling into US stock markets in response to falling volatility, propelling the market.
- Systematic strategies have added about $72bn in US stocks in the past three months.
- Stock market exposure among active managers is close to a one-year low.
- Quant funds have helped to prop up stock indices, but have not been enough to offset losses elsewhere in many hedge funds’ portfolios.
Algorithms prop up the market as fretful humans sit out the uncertainty
Algorithmically driven hedge funds are buying US equities at one of the fastest rates in a decade, propelling the market and helping to explain why the US stock market has proven surprisingly resilient this year despite the widespread pessimism.