Investors can benefit from a hedge fund managers pain & gain. A January 5 report from UBS highlights the stocks where hedge fund managers might have an emotional attachment that clouds their judgement — and creates over- and under-priced stocks as a result. Hedge Fund Letters To Investors Pain & gain leads to illogical market decisions The UBS Global Quantitative Equities research group has been searching for “the largest pain and gain trades” that is based on a very human tendency: Avoiding regret and seeking pride, also known as pain & gain. These very emotional issues “are both at the…
UBS: Institutional Investor Emotion Drives Pain & Gain Trades
Mark Melin
Mark Melin is an alternative investment practitioner whose specialty is recognizing the impact of beta market environment on a technical trading strategy. A portfolio and industry consultant, wrote or edited three books including High Performance Managed Futures (Wiley 2010) and The Chicago Board of Trade’s Handbook of Futures and Options (McGraw-Hill 2008) and taught a course at Northwestern University's executive education program.