Rate Hikes, Inflation Leave Quants Grappling With Era Where Cash Actually Pays

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Roaring inflation and rapid rate hikes have brought a welcome return of the kind of big swings and dislocations beloved by investing’s smart set, but it hasn’t been a blessing for every breed of quant.

Factor strategies, designed to wring steady money from credit and stock markets by going long and short securities based on traits like how cheap they look or how fast they’ve risen, misfired en masse in 2023.

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