Hedge Funds' Best Ideas? Those Are Just Stocks They're Dumping
- Harvard Business School PhD published paper in April
- “Stocks were their ‘best ideas’ but not likely any longer”
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Ever wonder why hedge fund managers are so willing to get up on a stage and tell the world about their best ideas? A new study suggests an answer: the ideas are getting old, and they need a spot to sell.
The research pertains to what is by now a familiar ritual. A few times a year, famous investors crowd a conference hall somewhere and publicly discuss the companies they like. What they leave out is that starting roughly then, they’re much more apt to sell the stock than load up on more.