Crowding at Historic Extremes as Systematic Funds Hit Worst Streak Since 2023

Crowding is at historic extremes — and it's starting to hurt. Systematic L/S managers are down 3.1% over the last five sessions (-3.3 SD vs five years), the worst stretch since December 2023, concentrated in the short leg. Why it matters: Highly correlated positioning means regions are leaning on each other; the US-vs-Asia alpha correlation sits at the 99th percentile, a level that last coincided...