Computer-Driven Funds Bounce Back in September

Quantitative strategies turned in solid performance last month, thanks to being defensive after the August sell-off.

A number of prominent trend followers, commodity trading advisers and other computer-driven managers posted very strong gains in September after turning in mixed results the previous month.

More importantly, over the two-month period, the large so-called quantitative funds mostly delivered on their implicit promise: that they are largely uncorrelated with the stock market, enabling investors to offset or hedge possibly big losses from their long-short or long-only hedge funds over the most recent streak of extreme volatility.

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