In August of 2007 we had one of the first truly large market dislocations that preceded the financial crisis. All at once, a large group of the biggest quantitatively managed hedge funds all started to get crushed at the same time. In just a couple of weeks, strategies that had worked brilliantly for years stopped working and no one really knew why. Many of the funds utilized similar strategies, but they were diversified, so it was odd that they were getting hit from all sides.