Pack Mentality of Hedge Funds, including Tiger Cubs, moving stocks more than fundamentals
| January 20th, 2011 | ||
| Hedge fund managers once took pride in their ability to pick out unique trading opportunities that their peers missed, and in so doing, justified their higher-than-average fees. Now, it appears that just the opposite is taking place. The Wall Street Journal reports that hedge fund managers now openly exchange stock trading tips and meet at idea-sharing dinners where they discuss their favorite trades and stock positions. This has contributed to multiple hedge funds plowing their sizable resources into many of the same shares. For example, shares of credit card issuer, Master Card, attracted a lot of hedge funds including several funds spawned from or affiliated to Julian Robertson’s legendary Tiger Management, including Andreas Halvorsen's Viking Global. While stocks benefit from this massive inflow of capital, they also suffer badly from the mass exodus when hedge fund traders collectively lose faith in a stock. As a result, shares trade less on corporate fundamentals and more on the whims of hedge fund managers. | ||
For Detailed Investor Profiles on these Investors, click below: |
Tiger Management |
Viking Global Investors |
Related People: Alex Robertson;
Related Entities: Tiger Asia;
Related Article Tags: Multi-Strategy, Long Short, Equity, Debt and Global Macro Hedge Fund News; Featured Reports
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