Hedge Fund Derides Quant Traders, Doesn't Buy Fed "Dovishness"

Richard Maraviglia and Matt Barkoff of Dallas-based Carlson Capital are having a difficult time in the market due to quantitative hedge funds and the pair isn't buying the common meme of Fed "dovishness."

Quantitative hedge funds: Black Diamond Thematic notes the significance of the ten sigma move

Writing in an investor letter to clients of its Black Diamond Thematic, L.P. hedge fund dated October 16, the day after a shocking drop in Treasury yields, the letter noted the significance of the “ten sigma move” that featured “panic bond buying, massive volume, a ten percent decline in the market and some quite staggering examples of flattening out of positions.” The fund letter said they were waiting for the "crescendo event,"...