Quant Style Slump That Strategists Foretold Finally Arrives

(Bloomberg) If you’ve been cursing at technology stocks for the past two days, there’s another corner of the market that’s perhaps just as deserving of your anger. It’s called momentum — quant jargon for stocks that have performed the best over the past year or so — and it’s gone through a rare bout of pain this week.The lagging performance didn’t come out of thin air. Strategists from Morgan Stanley to Lazard Asset Management Ltd. have recently stoked worries about the popular quantitative strategy. Their primary concern? That investors piling into the same winners, including lofty technology stocks, had heightened the risk of a rush to the exits.

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