Quant hedge funds have reaped significant gains from the global bond sell-off, with rising yields driven by inflation fears, strong US economic data, and soaring crude prices. Funds using quantitative trend strategies have profited by betting against government bonds as 10-year US Treasury yields surged from 4% to over 5.2% since February. Notable performers include Connecticut-based Graham Capital’s Tactical Trend fund, up over 31% year-to-date, London-based Winton’s Diversified Macro fund, gaining 17.5% in the year to last Friday, and Aspect Capital’s flagship fund, up 21% this year.
Meanwhile, the US Securities and Exchange Commission proposed rule changes to expand retail access to private markets, including allowing performance fees for retail funds and modifying interval fund structures, as part of efforts to broaden alternative asset availability under Chair Paul Atkins. German Bunds have also emerged as a relative haven amid broader bond market turmoil.
Source: Financial Times Companies · Summarized by HeadlinesBriefing