Hedge Funds Crowded Bets During Q4 2014 by AlphaBetaWorks Insights Hedge funds share a few systematic and idiosyncratic bets. These crowded bets are the main sources of the industry’s relative performance and of many individual funds’ returns. We survey risk factors and stocks responsible for the majority of hedge fund long U.S. equity herding during Q4 2014. Investors should treat crowded ideas with caution: Due to the congestion of their hedge fund investor base, crowded stocks tend to be more volatile and are vulnerable to mass liquidation. In addition, consensus hedge fund bets have underperformed in the past. Identifying Hedge Fund Crowding…
This content is exclusively for paying members of Hedge Fund Alpha
Insider Strategies and Letters to Shareholders from the Top Hedge Funds and Maximize Your Portfolio Growth with Hedge Fund Alpha
Don’t have an account?
Subscribe now and get 7 days free!
