[smbruin22]

didn't read the article but wasn't quant long/short equity fund meltdown alot due to many funds owning the same stocks (and short the same).. . long alot of low value (i.e. low price/cash flow) with good momentum stocks. some of them LBO candidates. then lbo boom died. market got spooked by other things too and then there was some pressure on these funds, prices go down and now you have problems with more funds. so you have tons of sellers on stocks quant funds had gone crazy on (alot were small to mid caps and not that liquid).

outside equities, i think the carry trade got absolutely crushed. thinking of global alpha partially in this regard... and many hedge funds invested and/or ran CDO/CLO/SIV etc., many of which have been killed (some others have made a killing being short)

saw headline on bloomberg that global alpha may be down 60% for the year (including redemptions... so performance wasn't down 60%.. but say down 30% and 30% of the assets were redeemed)

i'm sure some of what i said isn't completely correct. but lots of press on the quants owning/shorting the same mid cap stocks and then some redemption pressure.