Hedge Funds Have Been Concentrated In Losing Stocks

Hedge funds have been struggling over the last several months as growth and momentum began to weigh on returns. Hedge funds are scrambling to rotate into defensives and away from stocks which have fallen out of favor. Data from Goldman Sachs suggests funds still have quite a bit of adjusting to do.

Q3 hedge fund letters, conference, scoops etc

Concentrated hedge fund positions lag

In their November "Hedge Fund Trend Monitor," analyst Ben Snider and team identified some reasons hedge funds have done so poorly in the second half of the year. One of the trends they noted was the underperformance of the 20 most concentrated stocks in the S&P 500. They explained that over the last 17 years,...