Strategy focus: Quants down on rising correlation


The first 10 days of August brought chaos to hedge funds that rely on quantitative models for their investment strategies, with such top-shelf firms as Renaissance Technologies, AQR Capital Management and Goldman Sachs Asset Management suffering steep losses. Some managers managed to recoup losses by month's end, but many others were left deep underwater.

Jim Simons' Renaissance Institutional Equities Fund International (Class B) ended the month up 0.43%, having clawed back losses of up to 8.7% in mid-August. That fund has netted gains of 1.06% for the year so far. AQR Capital Management also managed to recover most