Inventories of reinforced steel bars, a key construction material, started rising before the arrival of the summer slow season, and China’s State Council had warned repeatedly on price increases, he said in an interview.“Our models were flashing strong signals of a reversal,” said Lee, the general manager of Shanghai-based Regan Group, which manages about 10 billion yuan ($1.6 billion). By the middle of May, rebar prices began to plunge, leaving Regan’s CTA No. 3 fund up 125% for the month.
As China battles commodity prices which threaten to derail the nation’s economic recovery, the quantitative offerings of so-called commodity trading advisers have outperformed, drawing a flood of investor interest. Hangzhou-based Qihe New Asset Management’s Chenxing No. 1 delivered the best returns among all CTAs in China, topping 400%, for the first half.
Investors sit on huge gains from GameStop
Value of Activist investor Ryan Cohen s stake in GameStop worth about $2.2bn after a rollercoaster day for the shares
Ryan Cohen s stake in GameStop has soared in value
Fund managers are sitting on huge gains even after the Reddit-fuelled bubble in GameStop shares appeared to pop.
As the stock took a rollercoaster ride on Thursday, dropping by nearly two thirds in one point, some managers had cashed out and others were still up by thousands of percentage points.
Ryan Cohen, the founder of Chewy.com and an activist shareholder in GameStop, watched as the value of his holding slumped by roughly a third as trading stabilised.
10 Biggest Quant Funds in The World, 10 Stock Picks
Quant hedge funds saw massive losses in 2020 as machine powered strategies failed to accurately predict the unprecedented market trends. Quant equity hedge funds mainly struggled due to the introduction of new market trends in the pandemic year, which have no previous precedent. This is contrary to quantitative trading strategies that study a large amount of historic data to predict future trends. Quant hedge funds are blaming increased volatility for hefty losses.
Volume, price, and historical data are among the big factors when it comes to quantitative analysis.
“If nothing else, it’s clear that 2020 represents an Achilles’ heel in the hedge fund machines, namely a real failure to grapple with unique new drivers of stock returns that don’t fit the academic models. Even the newer ‘machine learning’ approaches felt somewhat impotent since you need to learn from something, and probably rack up losses while you’re lea