Weekly_MN _JUN_20_2025

Equity Long/Short “Alpha” erosion since May

Equity Long/Short strategies experienced their peak YTD MSCI World outperformance moment in early April. The start of the year featured a small lag in Equity Long/ Short performance versus the MSCI World, but since May this gap has widened due to shorts dragging down profitability amid persistent buying pressures by US retail investors of overvalued stocks.

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