Man vs. machine for hedge funds

Daily Star – Critics, as Oscar Wilde once remarked, know the price of everything and the value of nothing. This year, investors who pride themselves on being able to spot hidden value in unloved companies have struggled, while those that only care about price have excelled. So-called trend-following hedge funds, which use complicated computer models to ride price momentum across hundreds of assets such as oil futures and currencies, have made hay in the last half of the year as commodity prices have tumbled.

At the same time, the turbulence caused by the tumbling price of oil spread into other markets, making life uncomfortable for hedge funds that specialize in stock picking or trading around esoteric events at individual companies.

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