Nearly 70% of hedge strategy funds reported losses in the past year.

According to China Fund News, over the past year, despite a bullish market trend, nearly 70% of quantitative hedge funds have reported negative net value growth rates. Rising hedging costs, insufficient style adaptability, liquidity pressures, and strategy homogenization have become the main factors causing hedge funds to underperform in a bull market. To broaden profit sources, many hedge funds are flexibly adjusting allocation ratios based on hedging costs, while also enhancing portfolio efficiency through interest rate bonds, convertible bonds, and long-only equity strategies.