Quants Are Grabbing the Calm Stocks That Hedge Funds Don't Want
- Factor exposure soars compared with 5-year average: Bernstein
- Dovish Fed a potential tailwind for rate-sensitive portfolio
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Quants are flocking to boring stocks as the strategy flips from high-flyer to laggard -- while hedge funds that are snubbing placid securities outperform.
Managers that follow quantitative strategies are loading up on low-volatility shares, a shift from their typical allocation over the past five years, according to Sanford C. Bernstein. Those wagers are underperforming the broader market and potentially hitting returns.