Cross-Asset Quants Are Facing Their Worst Losses in a Decade
- CTA funds plunge 5.1 percent for worst period since 2007
- Selloff in stocks, bonds worry critics of systematic funds
What the June Jobs Report Means for the Fed
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Hawkish signals from central bankers have punished stocks and bonds alike in the past week.
Also punished: investors who make a living operating in several asset classes at once. They’ve been stung by the concerted selloff that lifted 10-year Treasury yields by 25 basis points and sent tech stocks to the biggest losses in 16 months. Among the hardest-hit were systematic funds who -- either to diversify or maximize gains -- dip their toes in a hodgepodge of different markets all at the same time.