Quant Funds Suffer Losses As Investors Shed Treasuries

After a rough 2012 for many Quant funds its deja vu. The recent sell off in treasuries dipped bond prices to new lows and brought major losses for the quant funds who trade fixed income futures. Bond traders were punished as Fed hinted on stemming its quantitative easing program. A 10-year bond yields increased from 1.6 percent to 2.25 percent on May 29, as a number of hedge funds incurred losses. Goldman Sachs Group, Inc. (NYSE:GS)'s Francesco Garzarelli thinks that bond yields will go as high as 2.5 percent by the end of this year but dismisses fears of treasury holders. He argues that it is healthy for the markets if they start moving on macroeconomic fundamentals rather...