Skip to content
Subscriber Only

Momentum Quants Will Unleash the ‘Most Turbulent Rebalance Ever’

  • Trend-chasing funds set to swap tech-stock exposures for value
  • Waves of quant buying and selling may cause market disruption

One of the decade’s most successful quant strategies is poised for a dramatic March makeover that threatens fresh volatility for a stock market already reeling from the turmoil in technology shares.

Almost a year after the S&P 500 hit the Covid-spurred low, momentum investors are set to pare exposures to lockdown favorites -- mega-caps and stay-at-home companies -- to join the boom in cyclical equities.