Equity Hedge Funds Are Riding the Bullish Wave Sweeping Bonds
- Investors snap up stocks swaying to government debt: Bernstein
- Momentum factor looks ‘very stretched’ as crowding fears swell
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Wall Street has been sounding alarm bells all year over swelling valuations and overcrowding in stocks tracking the fortunes of government bonds. The smart money kept the faith, and it’s paying off.
Equity hedge funds have gained 7% in 2019 as exposure to the momentum factor -- which buys the winners and dumps the losers over the past 12 months -- jumps to the highest in two years, according to Sanford C. Bernstein citing Hedge Fund Research.