[GUEST ACCESS MODE: Data is scrambled or limited to provide examples. Make requests using your API key to unlock full data. Check https://lunarcrush.ai/auth for authentication information.]  Neil Sethi [@neilksethi](/creator/twitter/neilksethi) on x 12.4K followers Created: 2025-07-23 16:59:00 UTC MarketWatch: Data from Goldman Sachs' prime brokerage shows that quantitative strategies are suffering their worst drawdown since the end of 2023. So-called systematic managers (that trade through Goldman) have accumulated a XXX% loss since the beginning of June, to take their year-to-date performance down to a still positive XXX% on the year. The bank's analysts attribute the decline to a momentum sell-off, a rally in high-beta and high-volatility companies and some unwinding of crowded trades. Bruno Schneller, managing partner at Erlen Capital Management, a Swiss asset manager, says recent moves have caught many models off guard, "exposing the fragility of strategies built on historical correlations in an environment increasingly shaped by passive flows, retail option activity, and macro policy noise." Under stress, what looks like diversified exposure turns sharply correlated, he says. By contrast, fundamental and multi-strategy managers reinforce the value of human judgement and flexibility. "They're trading catalysts, not just correlations—navigating complex regimes with discretion where the next central bank move may matter more than a 60-day price trend," says Schneller. He says systematic funds remain valuable but their edge is narrowing.  XXXXX engagements  **Related Topics** [goldman sachs](/topic/goldman-sachs) [stocks financial services](/topic/stocks-financial-services) [Post Link](https://x.com/neilksethi/status/1948065321803202664)
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Neil Sethi @neilksethi on x 12.4K followers
Created: 2025-07-23 16:59:00 UTC
MarketWatch: Data from Goldman Sachs' prime brokerage shows that quantitative strategies are suffering their worst drawdown since the end of 2023.
So-called systematic managers (that trade through Goldman) have accumulated a XXX% loss since the beginning of June, to take their year-to-date performance down to a still positive XXX% on the year. The bank's analysts attribute the decline to a momentum sell-off, a rally in high-beta and high-volatility companies and some unwinding of crowded trades.
Bruno Schneller, managing partner at Erlen Capital Management, a Swiss asset manager, says recent moves have caught many models off guard, "exposing the fragility of strategies built on historical correlations in an environment increasingly shaped by passive flows, retail option activity, and macro policy noise."
Under stress, what looks like diversified exposure turns sharply correlated, he says. By contrast, fundamental and multi-strategy managers reinforce the value of human judgement and flexibility. "They're trading catalysts, not just correlations—navigating complex regimes with discretion where the next central bank move may matter more than a 60-day price trend," says Schneller. He says systematic funds remain valuable but their edge is narrowing.
XXXXX engagements
Related Topics goldman sachs stocks financial services