Adage Capital Trailing Stocks Says ‘Smart Beta’ Distorts Market

  • Hedge fund returned 1.1% in fiscal year ending June 30
  • Environment is ’most challenging’ seen in years, letter says

For the first time since it started 15 years ago, Adage Capital Management is trailing the stock market. One reason for the rare underperformance, according to the almost $28 billion hedge fund: The rise of factor-based investing.

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