Some of the best-known computer-powered hedge funds have struggled to adjust to the  chaotic markets rocked by the coronavirus, with Renaissance Technologies, Two Sigma and DE Shaw seeing some of their biggest funds hurt this month. 

So-called quantitative funds rely on high-powered computers, vast data sets and algorithms to systematically exploit patterns in securities prices. Their success has spawned a multitude of copycats and led many traditional investment groups to try to emulate their techniques. DE Shaw, Two Sigma, and Renaissance — considered the gold standard of quant funds — now manage close to $200bn combined.

But the ferocity of the recent market turmoil has inflicted some painful losses, forcing many quants to ratchet back their positions. One big investor in hedge funds described the numbers from his quant portfolio as a “disaster”, while some say the setbacks resemble a “ quant quake” — a reference to a brief but traumatic period for the industry in August 2007.