Skip to content
Subscriber Only

A Crowd Is Your Enemy as Too Many Funds Worsen Earnings-Day Pain

  • Popular shares fall more when earnings dissapoint: Bernstein
  • Least crowded shares post 2.2 percent gain after earnings miss

One way of limiting losses this earnings season is to figure out what everyone else is buying and do the opposite.

More than in past quarters, owning popular stocks this month has resulted in disproportionate pain when company earnings failed to live up to forecasts, according to Sanford C. Bernstein & Co.’s quantitative analyst group headed by Ann Larson. At the same time, hiding in the least-loved parts of the market has been a workable strategy for protection.