Significant divergence in excess returns: Quantitative private equity strategies face testing

Since 2026, while the overall A-share stock index has experienced relatively strong fluctuations, the structural differentiation among individual stocks has further intensified. The latest monitoring data from third-party institutions shows that in the first two months of this year, the excess returns of quantitative strategies in the private equity industry have exhibited a significant divergence. For mainstream strategies such as the CSI 500 and CSI 1000, the difficulty of achieving excess returns has clearly increased, with some leading institutions even experiencing temporary negative excess returns, which contrasts sharply with the 20% to 30% excess returns of quantitative private funds throughout 2025. Several interviewed quantitative private fund managers stated that, against the backdrop of rapid market style shifts and extreme thematic performances, quantitative strategies are undergoing a “big test.” From the perspective of strategy iteration and fundraising changes, the quantitative industry has entered a new stage of refined competition and differentiated rivalry. (China Securities Journal)