While human portfolio managers fret over economic uncertainty and the health of the US banking system, some algorithmically driven hedge funds have been buying stocks at one of the fastest rates in a decade, according to bank trading desks.
Quant funds have been piling into US stock markets in response to falling volatility, helping to prop up the market as active managers sit on the sidelines.
“Systematic reallocation has really been the [main] source of demand outside of corporate buybacks” this year, said Charlie McElligott, an equity derivatives strategist at Nomura.
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