China’s deepening stock-market slump is even taking its toll on quantitative hedge funds, whose computer models have helped them outperform human traders at rival funds for the past three years.
Private quant funds suffered a 7.2% average loss in January, according to Shenzhen PaiPaiWang Investment & Management Co., underperforming the benchmark CSI 300 stock index, which dropped 6.3%. While traditional hedge funds fared even worse, it’s a far cry from quants’ stellar 4.9% gain in 2023, when China’s main equity gauge tumbled.