Don't follow the herd

Quant funds


Last month saw muted observance of what many analysts consider to be the first anniversary of the credit crisis. Most agree the turbulence began in earnest on August 9, 2007, with market volatility spiking sharply, interbank lending all but evaporating and central banks injecting billions of dollars into capital markets globally.

The market stress also hit the quantitative equity market hard. The industry experienced unprecedented losses between August 8 and August 10, with various long-only mutu