Fund assets and Dimensional Quantitative successively turn to longs, where will the future of neutral strategy go?

Jinshi data news on October 24th, after the quantitative giant MagicQuant abandoned its hedging series products, another quantitative institution, Manshu Assets, will also no longer promote neutral strategies in the future. Manshu Assets recently announced that its future main strategy will be adjusted to strategies with long positions exposure, rather than promoting neutral strategies. Previously, the quantitative giant MagicQuant also stated that it will abandon its hedging series products and focus on quantitative long investments in the future. According to many interviewed quantitative institution professionals, the main reasons for current quantitative institutions to abandon neutral strategies are the profit drawdown of neutral strategies, low operational cost-effectiveness, and difficulty in meeting customer profit expectations. In addition, the reduction of margin trading and losses in futures also make neutral strategies less viable than before. However, some quantitative institution professionals believe that MagicQuant’s clear expression of abandoning neutral strategies is based on the company’s own business decisions and does not represent the overall trend of the industry. ‘From a long-term perspective, strategies should not be judged as ineffective based solely on short-term losses. The vast majority of private sale quant funds will not give up neutral (strategies),’ said a private sale fund professional.