Investing in hedge funds quantitative hedge funds gained

Quantitative hedge funds gained traction as algorithmic models captured short-term equity rotations in volatile sessions. Investors looking at investing in hedge funds of this type benefit from advanced statistical arbitrage capabilities, which delivered 4.8% YTD returns. Every investor in Molecular Partners AG ( VTX:MOLN ) should be aware of the most powerful shareholder groups. The group holding the most number of shares in the company, around 50% to be precise, is hedge funds. Put another way, the group faces the maximum upside potential (or downside risk). These vehicles are called hedge funds because they seek to “hedge,” or reduce overall portfolio risk, by investing in ways that are uncorrelated with a traditional stock-and-bond portfolio . That diversification is an attempt to spread out the risk across different strategies so total returns don’t depend on one type of asset class. Recent Bloomberg Hedge Fund Index data reports a 2.9% average return across equity funds, leaning on value stocks’ recovery. Analysts recommend monitoring these managers as they shift allocations into cyclical industries, a trend appealing to retail investors exploring hedge fund opportunities.