Boom Times At The Hedge Fund Hotels—Funds Have Never Been More Levered Or More Invested In The Same Handful Of Stocks

At the same time that factor and sector bets are getting bigger, funds making those bets are doing so in increasingly similar ways.  QDS has found that within groups of hedge funds with similar styles, investor portfolios are getting more similar to each other.  Similar portfolios means an increased risk of funds trading the same stocks at the same time.