A significant US stock rally prompted by softer than expected inflation news, saw global hedge funds that use algorithms to trade, suffer their second worst single day of trading so far this year, according to a report by Reuters.
The reports cites a note from Goldman Sachs as revealing that systematic long-short equities traders traders were down 1.2% on average on 14 November, but remain up by an average of 14% YTD.
Active ‘human-powered’ stock-picking hedge funds meanwhile, managed to gain 0.6% on the same day, and are now set to record their best monthly returns since January this year, according to Goldman Sachs.
