Factor rotation: Market neutral hedge funds stumble, but special situations managers surge Submitted By Hugh Leask | 20/11/2020 - 3:59pm The strong market moves sparked off by the recent coronavirus vaccine breakthrough brought gains and losses across the hedge fund spectrum over the past week, as investors fled momentum-based stocks and piled into value-based companies. Lyxor Asset Management said on Friday the “massive” momentum reversal, which sent value stocks soaring in recent days, benefitted special situations strategies to the tune of 3 per cent, thanks to their higher market beta and value bias.