Some quants fear more deleveraging to come

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The mass unwinding of leveraged trades by hedge funds in March may have further to run, raising fears of more volatility in asset prices and causing problems for many rules-based investors.

Hedge funds offloaded risk so rapidly last month that one measure of popular hedge fund trades monitored by Wolfe Research made a sixteen-standard deviation move lower – something that should happen less than once in a billion years.

Markets have since recovered some of the lost ground. US stocks are up

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