The AI (& Momentum) Trade Is Getting (Very) Crowded; Top Goldman Traders Warn

Hedge funds had a strong August and continue to experience positive returns so far in September: 

• Fundamental L/S returns are tracking +2% MTD (+12% on the year), driven by beta gains and positive alpha (+0.8%) – Fundamental L/S “alpha” returns have risen for five consecutive weeks. 

• Systematic L/S (quant) returns are up +0.6% MTD (+12.9% YTD).