Concentration in hedge fund portfolios has been rising throughout the year and approached a record high during the third quarter. In fact, the only time concentration was higher was during the fourth quarter of 2018.
Hedge Funds Are Highly Convicted But With Minimal Crowding
According to Goldman Sachs' Hedge Fund Trend Monitor for the third quarter, the typical hedge fund now holds 71% of its portfolio in its top 10 positions. However, while this high concentration points to high levels of conviction among hedge funds, crowding across fund portfolios fell modestly, although it remains above its long-term average.
Q3 2022 hedge fund letters, conferences and more
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