Hedge Fund Crowded Trades Source Of Pain

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 close. Hedge funds...