Quants in Worst Drawdown Since October as Crowded Bets Buckle

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Quant hedge funds are experiencing their worst drawdown since October, largely due to setbacks in crowded US stocks, which is reviving concerns about volatile returns in the sector.

Market Impact

Market impact analysis based on bearish sentiment with 90% confidence.

Sentiment
Bearish
AI Confidence
90%
Time Horizon
Short Term

Article Context

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Quant hedge funds are kicking off the year in the red, as setbacks in crowded US stocks clobbered the strategies, reviving concerns about volatile returns in the sector.

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Original article published by Bloomberg on January 21, 2026.
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