Crowded trades show trends: On a global basis, hedge funds are “crowded” into technology trades while generally short the broader markets, a UBS “Crowded Position Report” from the bank’s prime brokerage unit shows. The proprietary March 13 study of its clients positioning also shows U.S. crowded positioning very similar, with two key winners in the medical field, while key short positions appear similar as well. Facebook and Google crowded longs, but Netflix crowded short making for a FANG relative value trade The crowded long trades are not exactly the “FANG” stocks – Facebook, Amazon, Netflix and Google – but it’s…
Hedge Fund Crowded Trades Source Of Pain
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.