Why Quants Could Win Big By Exploiting 2022’s Macro Effects And What To Expect In 2023

The Federal Reserve raised interest rates by another quarter of a point in February, marking the eighth consecutive raise as it tries to rein in inflation. Amid this backdrop, many quantitative funds enjoyed massive returns in 2022.

A banner year for quant funds in 2022

For example, sources familiar with the matter told Reuters that AQR recorded its best year ever in several of its strategies on the back of strong macro trends in 2022. AQR’s multi-strategy Absolute Return Strategy returned 43.5% net due to “careful portfolio selection,” Reuters reported.