Niederhoffer Up 3.2% In Q2; Sees a Return To Volatillity

R.G. Niederhoffer Capital Management is noting the markets have been so quiet that the 1.18 percent drop in the S&P 500 (INDEXSP:.INX) on July 17th was the first time in 63 consecutive days the market moved more than 1 percent in either direction – the longest such streak in almost 20 years.

This unusual lack of volatility has been questioned by a number of quantitative traders as they gear their algorithmic investing approaches to deliver uncorrelated returns.  The problem with such approaches, however, is that performance when the market is sailing to new heights can...