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Momentum Darlings Hit Wall in S&P as Hedge Fund Stocks Slide

  • The 20 companies with the most hedge fund ownership fell 4.4%
  • All but one stock in a 101-company momentum ETF declined
Bloomberg business news

Navigating the Rocky Start to Markets in 2016

By
Joseph Ciolli and Oliver Renick
Updated on

Trades that kept the ceiling from crashing in last year are giving way now, as momentum stocks and others beloved by hedge fund managers lead a plunge that is pushing the Standard & Poor’s 500 Index toward its August low.

With U.S. equities sinking the most since September on Wednesday, the 20 stocks in the S&P 500 with the most hedge fund ownership declined even more -- an average of 4.4 percent, data compiled by Bloomberg show. Among the 10 most-owned shares, losses averaged 5.6 percent.