Bloomberg Podcasts · Stocks, Bonds Fall as CPI Data Fuel Fed-Hike Bets

1. 1. Trend-following returns are lumpy and episodic, but 2022 was an extraordinary year for quant strategies.
2. 2. Quant models profited from three strong momentum moves: long equities, short bonds, and long energy.
3. 3. Hedge fund performance dispersion is extreme, with CTAs up over 1,300% year-to-date while structured credit gains only 2-3%.
4. 4. Macro trading today is not purely directional and volatile; it spans global rates, FX, equities, and commodities.
5. 5. The current macro environment is the most interesting in decades, with 85 rate moves since 2022 versus only 22 from 2010 to 2020.
6. 6. Higher interest rates have not significantly increased funding costs for leveraged hedge fund positions.
7. 7. Investors face a conundrum with stocks near record highs despite geopolitical risks and midterm elections.