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What Has Generated Alpha This Year?
It only makes sense in this "good news is bad news" market that the best outperformance this year has been achieved by being ultimately contrarian and fading the crowd. As BofAML warns, 2015 is another year of position-driven alpha as selling the 10 most-overweight stocks held by active managers and buying the 10 most-underweight stocks crated a stunning 17 percentage point spread this year...
BofAML sees risk this positioning trade continues.
Consultants may be helping to perpetuate it, given they have honed in active share as a key metric for fund managers, which has forced managers into a crowded subset of similar holdings (typically smaller, more idiosyncratic stocks).
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I'm confused. All of the other articles said that the top .01% got all the money. /s
Active Share is another metric designed to dupe the unsuspecting 401(k) crowd into buying MFs that have high turnover and hence high expenses (fees).
Leveraged USD cash has everything beat so far this year.
Cleanest shirt in the dirty laundry. Will likely persist until the FED really unleashes the helicopters.
The stock market is a sideshow.
Stocks have always been a lagging indicator. Watch HCY and Treasuries, that's where the real shitstorm is brewing.
gosh, the good old days when people traded. i used to make the market in thinly traded stocks with 5-10000 share trades that market makers could not resist in a 50-100000 share volume day. it still works today but not as easily. the bots hve made trading much more technical.
Going against Gartman has generated Alpha!