Quants Take Beating as Momentum Strategy Lags Stock Rebound
- ETF investors withdraw $275 million in blow to high fliers
- Bernstein warns strategy faces valuation and crowding risks
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Equity investors are fleeing the darlings of yesteryear, hit by valuation fears and spiking correlations.
In a sign of vanishing confidence in the bull market’s biggest anchor, $275 million fled the iShares Edge MSCI USA Momentum Factor ETF on Tuesday -- the biggest one-day withdrawal since May -- even as the broader index edged higher.