Hedge funds are getting whacked in an ‘unheard of’ stock market shift — and a leaked Morgan Stanley memo warns of possible pain for months
|09/13/2019||Posted by BusinessMediaguide.Com under General World News||
- A massive shift in the stock market from top-performing growth stocks to lower performing names triggered a sharp shift in “momentum,” and is crushing hedge funds this week.
- “This has been a brutal move,” said a person at a hedge fund in London. “Huge move and lots of pain. It was like a 4 standard deviation day followed by another 4 standard deviation day. That’s unheard of.”
- “The level of crowding remains high, portfolios are fragile right now, and should there be a fundamental shock, this unwind could persist for multiple months,” a Morgan Stanley memo to clients said.
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