Beware These Crowded Stocks Held By Underperforming Hedge Funds

Multiple studies of crowded stocks are conducted every year with different goals. Simply knowing which names are more crowded than others has enabled some hedge funds to earn a tidy profit during times when momentum plays are down. However, there is more than one way to take advantage of opportunities presented by crowded stocks, and that's by paying attention to the movements in these names and the types of hedge funds which hold them.

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Watching crowded stocks

In a note this week, Jefferies analyst Steven DeSanctis advises investors to watch crowded...