Quants Are Poised to Unleash a Wave of Cash in Stock Market
- After selling spree, calmer markets create opportunities
- ‘Longer horizon buying flows are huge’: Nomura’s McElligott
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The largest unwind in US equities since the Covid-19 pandemic is over, and now trend-following quant funds are ready to return to the stock market.
Over the past month, so-called systematic funds, which buy stocks based on market signals and volatility moves rather than company fundamentals, have sold the largest dollar-volume of equities in four years, according to Scott Rubner, global markets division managing director and tactical specialist at Goldman Sachs Group Inc.