Hedge fund strategies’ August returns through Aug 23 fell to about +0.8% after briefly exceeding +2% last week; US crowded trades were hit hard but show signs the worst may be over. The 20‑day rolling total flows into US hedge funds have bottomed and are improving; since 2018 this flow metric has turned positive by mid‑September each year, implying a seasonal window for net position rebuilding in the coming weeks. Momentum and trend‑following quant strategies have undergone deep drawdowns; histo

Hedge fund strategies’ August returns through Aug 23 fell to about +0.8% after briefly exceeding +2% last week; US crowded trades were hit hard but show signs the worst may be over. The 20‑day rolling total flows into US hedge funds have bottomed and are improving; since 2018 this flow metric has turned positive by mid‑September each year, implying a seasonal window for net position rebuilding in the coming weeks. Momentum and trend‑following quant strategies have undergone deep drawdowns; historically post‑drawdown returns are highly mixed, so caution on momentum’s near‑term direction. (JP Morgan Aug 23 report)