Hedge Fund Collapse in Sweden Puts Spotlight Back on Quants
- IPM shuts its doors after losing $4 billion in the pandemic
- More hedge funds closed than opened in last six years
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As one of Sweden’s oldest hedge funds shuts its doors, its chief acknowledges the firm’s quantitative strategies failed to cope with pandemic-induced market ructions.
Lars Ericsson, the chairman of soon-to-be defunct Informed Portfolio Management, said the fund’s medium-term models failed to handle the shock that hit markets in early 2020.