Quant Hedge Funds Face More Margin Calls as Chinese Stocks Surge
- Scale of requests was smaller than Friday, people familiar say
- Market-neutral products faced 3-5% point drawdowns last week
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China’s biggest stock market rally in more than a decade has added pressure on the nation’s quantitative hedge funds.
Quants that short index futures as part of their market-neutral strategies faced additional margin calls as shares continued to surge on Monday, according to people familiar with the matter. The scale of requests was generally smaller than on Friday when an exchange glitch made it harder for funds to raise cash, the people said, asking not to be identified because the information was private.