Some hedge fund managers have in recent weeks posted their worst trading results in almost a year, as many got caught in crowded trades amid highly volatile markets, according to Goldman Sachs.
Goldman said in a note dated Wednesday that systematic managers - sometimes called quant funds - that use algorithms to trade market trends, have given back a quarter of their year-to-date returns. Returns for this group of traders are now up 10.8% for the year, down from a return of 14.4% on June 22.