Divergent market conditions trigger strategy malfunction, quant hedge funds face headwinds.

In August, the A-share index surged, but the quantitative private equity industry encountered a rare setback. While technology heavyweights were on the rise, over 70% of quantitative long products underperformed the benchmark index. According to the latest monitoring data from third-party institutions, as of August 31, only 20.83% of quantitative long products achieved positive excess returns in August, with the entire industry delivering the "worst" monthly performance this year. Insiders say that the A-share market began to show extreme differentiation from the second week of August. Technology heavyweights became the main force driving the market's bull run, continuously pushing the index higher. This market structure of "index rising, few major constituents rapidly rising, many stocks performing flat" makes it difficult for diversified quantitative strategies to adapt.