And it is the recent underperformance of Systematic funds that has people increasingly concerned, because most still remember how the August 2007 quant fund blow up unleashed a massive market drawdown, and may in fact have led to the collapse of Lehman. .

These dynamics and the incentives they generate lead to systemic crisis and collapse...

...the gap between top 10 market caps & EPS contributions has narrowed to smallest spread in years…

And it is the recent underperformance of Systematic funds that has people increasingly concerned, because most still remember how the August 2007 quant fund blow up unleashed a…

Quant hedge funds including Renaissance and Schonfeld posted their worst losses since 2023, with US-focused funds down 2.8% in January amid crowded trade

Quant hedge funds posted their worst losses since October 2025 in early January 2026, with Renaissance down 4% and Schonfeld off 3.9% amid crowded trade