A news story from yesterday's Wall Street Journal on hedge funds and their herding behavior provides a good starting point for this discussion. In summary, the article notes the following: (1) Hedge funds seem to buy and sell the same stocks, at the same time, and track each other's investment strategies.
Herding behavior: Why, so what and what if?
Herding behavior: Why, so what and what if?
Herding behavior: Why, so what and what if?
A news story from yesterday's Wall Street Journal on hedge funds and their herding behavior provides a good starting point for this discussion. In summary, the article notes the following: (1) Hedge funds seem to buy and sell the same stocks, at the same time, and track each other's investment strategies.