Some hedge fund managers have posted their worst trading results in almost a year, as many got caught in crowded trades amid highly volatile markets, according to Goldman Sachs.

Quant Funds’ Performance Decline

Goldman said in a note that systematic managers, also known as quant funds, that use algorithms to trade market trends, have given back a quarter of their year-to-date returns. Returns for this group of traders are now up 10.8% for the year, down from a return of 14.4% on June 22.

Losses came from bets against some of the biggest and most crowded parts of the market right now — U.S. equities, Asian developed-market stocks and, to a lesser extent, Europe, the note said.

Regulators, including those at the Bank of England, the Bank of Japan and the Bank for International Settlements, have been warning for some time about lofty valuations, particularly in the tech sector where shares in companies like Micron Technology, Intel or Marvell Technology have risen by around 200% in 2026 alone.

Original reporting: Appleton, WI News Feed (HLL/CB) — read the source article.