Quant Funds Struggle in 2020

Well-known firms with computer-driven investment strategies have seen sharp losses this year.

David Siegel, co-founder of Two Sigma Investments. (Misha Friedman/Bloomberg)

David Siegel, co-founder of Two Sigma Investments.

(Misha Friedman/Bloomberg)

Hedge funds driven by computers are supposed to have an investment edge as they can synthesize exponentially more data in a fraction of the time it would take a person. This advantage over fundamental funds that are driven by human decisions might be apparent during a very volatile year for financial markets like 2020.

Yet

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