Over the past year, despite a robust overall market performance, approximately 70% of quantitative hedge funds have reported negative unit net value growth rates. This can primarily be traced to several factors, including escalating hedging costs, inadequate style adaptability, liquidity pressures, and strategy homogenization. In an effort to bolster returns, numerous hedge funds have dynamically adjusted their allocation ratios to mitigate hedging costs. Additionally, they have incorporated interest rate bonds, convertible bonds, and long stock strategies to enhance the cost-effectiveness of their portfolios.
