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.

May 14, 2023 . 3:05 PM

1 min read

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.