Quants Are Headed for Best Year in Decades as Fed Stokes Volatility

A cadre of quant investment strategies that benefit during times of tumult are on pace for their best year since at least 2000—and those funds are counting on markets remaining volatile to extend their banner run.

The funds wager on various assets as they rise or fall, building their bets as a trend strengthens. When algorithmic warning signs flash, they pivot into fresh positions. Those strategies have been a rare haven for much of the year as the Federal Reserve’s interest-rate increases have pummeled stocks and bonds. The SG CTA Index, run by Société Générale and BarclayHedge to track the 20 largest such strategies, is up 19% in 2022, on pace for its best year since launching in 2000.