Falling volatility has seen a number of algorithmically driven hedge funds ramp up the rate of their stock buying to one of the fastest levels in a decade, according to a report by The Financial Times, citing data from bank trading desks.
Falling volatility has seen a number of algorithmically driven hedge funds ramp up the rate of their stock buying to one of the fastest levels in a decade, according to a report by The Financial Times, citing data from bank trading desks.
With active human managers sitting “on the sidelines”, quant or systematic funds, which use algorithms to detect tpricing rends, have been piling into US stock markets. According to the report, this helps to explain why the US stock market has proven surprisingly resilient this year despite widespread pessimism among human traders.
The S&P 500 has gained 8% to date while stock market exposure among active managers is close to a one-year low, according to Deutsche Bank.
