Investors can benefit from a hedge fund managers pain & gain. A January 5 report from UBS highlights the stocks where hedge fund managers might have an emotional attachment that clouds their judgement -- and creates over- and under-priced stocks as a result.
Hedge Fund Letters To Investors
Pain & gain leads to illogical market decisions
The UBS Global Quantitative Equities research group has been searching for “the largest pain and gain trades” that is based on a very human tendency: Avoiding regret and seeking pride, also known as pain & gain.
These very emotional issues “are both at the heart of the disposition effect,” Josh Holcroft and his team wrote....
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