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Alternative Market Briefing

Turmoil in Quant Land: A hedge fund's candid view why strategies that were once working regularly mysteriously stopped working

Thursday, July 06, 2017

Matthias Knab, Opalesque:

Neal Berger is is President of Eagle's View Asset Management and an investor and allocator I've known and respected for many years. His most recent extended market commentary, which is in parts included below, is a highly recommended read and a candid analysis why 'the lackluster performance from some historically smooth and steady strategies can no longer be dismissed as simply random coincidence in a low volatility environment.'

Having started as a global macro trader at New York-based Millennium Partners, Neal's Wall Street career spans nearly 30 years. Eagle's View seeks to capitalize upon market inefficiencies often overlooked by most traditional hedge fund investment vehicles and investing across a variety of unique strategies.

"June was only the 2nd time we've ever experienced a losing month exceeding -2%. While we are pleased that we remain positive YTD, the lackluster performance from some of our historically smooth and steady strategies can no longer be dismissed as simply random coincidence in a low volatility environment. We've analyzed our portfolio and returns over these past 18 months thoroughly and have come to some conclusions which we believe will have a positive impact upon our portfolio immediately ahead.

Naturally, it took us some time to determine whether we were witnessing normal variations amongst certain Managers, or, something larger was at play. We are not willing to sit idle and a......................

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