Investing
Computer-led equity hedge funds beat human stock-pickers in October
© Reuters. FILE PHOTO: The Wall Street sign is pictured at the New York Stock exchange (NYSE) in the Manhattan borough of New York City, New York, U.S., March 9, 2020. REUTERS/Carlo Allegri/File Photo
By Carolina Mandl
NEW YORK (Reuters) – Hedge funds that trade equities using computer programmes defeated human stock-pickers in October by a large difference in performance, according to a Goldman Sachs note.
Systematic long/short hedge funds, as the computer-led strategy is known, posted 4.97% in gains last month, while fundamental long/short went down 0.66%, the bank’s prime services team wrote.
The systematic funds’ performance was driven by asset selection, volatility and some crowned trades. In the case of the fundamental long/short funds, the detractor was their exposure to stock indexes. In October, the MSCI index of world stocks dropped 2.90%.
In the year through October, systematic long/short gained 15.06%, outpacing the 3.14% in profits that fundamental long/short posted.
As one of the world’s biggest prime brokers for hedge funds, Goldman Sachs tracks its clients to show some trends in the industry.
The bank said that overall, hedge funds across different strategies more sold stocks in October than bought, a trend already seen in the two previous months.
Last month, hedge funds also placed bets that stocks in energy, financials, consumer discretionary and information technology will fall.
Read the full article here
-
Passive Income7 days ago
Are You Running Your Business, or Is Your Business Running You?
-
Side Hustles7 days ago
How Your Body Language Can Help Win a Disagreement
-
Side Hustles6 days ago
How to Be Unapologetically You and Why It Matters
-
Side Hustles7 days ago
OpenAI Raises Record $6.6 Billion, Adds 50 Million New Users
-
Side Hustles6 days ago
With AI Magicx, It’s Like Getting an Entire Creative Team in One Money-Saving AI Tool
-
Investing7 days ago
7 Marketing Strategies to Help Your Startup Grow and Scale
-
Investing5 days ago
Nvidia CEO Jensen Huang: Demand For Blackwell AI Is Insane
-
Side Hustles5 days ago
Mark Zuckerberg Is Now Second Richest Person in the World