Hedge Funds’ Best Ideas No Better Than the Rest of Their Ideas
- Study finds ‘no systematic outperformance’ for top stock picks
- Researchers looked at holdings among 1,500 firms since 1999
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When hedge fund stars such as Bill Ackman, Lee Ainslie or Keith Meister speak at conferences, stocks can jump or sink.
Yet managers’ highest-conviction ideas aren’t necessarily any better than those in the rest of their portfolio, according to a new report that analyzed the stock-picking of almost 1,500 hedge funds over 20 years.