UBS: Institutional Investor Emotion Drives Pain & Gain Trades

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…