A $200 Billion Exotic Quant Trade Is Facing Existential Doubts
- Alternative risk premia investing is underperforming in 2020
- Managers are losing assets as doubts over strategy grow
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When 2020 began, one of the hottest businesses on Wall Street was selling exotic quant trades known as alternative risk premia. These strategies were marketed as diversifying, loved by hedge funds and priced cheaply.
Then Covid-19 happened.