Beware These Crowded Stocks And Surprise, Surprise, Amazon Isn’t One Of Them

Many lessons came investors’ way in 2018, especially as volatility took control with a vengeance last month. One of those lessons which perhaps hasn’t been written on extensively is the fact that trying to replicate what others are doing too closely can really get you into a jam, so maybe it's not such a good idea to try to imitate major hedge fund portfolios exactly.

Beware the crowded names

A recent report from Deutsche Bank mentioned how steep investor redemptions from multiple funds had strong negative impacts on other funds with similar portfolios when they were forced to unwind their positions to pay back that investor capital. For this reason, it’s always a good idea to stay on top of...