Quantitative hedge funds that were posting miserly returns just last summer are now taking it to the market. These funds are trouncing their fellow hedge funds and the broader markets, and some are on pace for their best year ever.
Lonny Bernath, principal of Charlotte, NC-based Headline Investment Management, has had a lot of success this year trading his US$23 million Headline Group Fund, which employs four strategies: a pair of equities strategies, a futures exchange-traded fund strategy and a currency strategy. Bernath said all of the strategies adopt rules-based modelling and none of them are correlated to each other.
