Quant funds just suffered their most crippling trading rout this year as momentum stocks flopped

Markets article says systematic/quant funds had their worst stretch since December 2023, with a 3.1% drawdown over five sessions and about 1% lost on Monday alone, driven by the forced unwind of crowded momentum trades rather than broad market weakness. The S&P 500 fell only 0.43% over the same period, underscoring that the pain was concentrated in factor and positioning flows. Goldman Sachs noted losses were widespread across the U.S., Europe and Asia, while Citi said momentum stocks posted their fourth-worst performance in 22 years. Despite the rout, systematic strategies remain up 11.3% for 2026, and analysts described the episode as a normal cyclical setback unless there is evidence of a deeper structural change in market behavior.