Hedge Fund Crowdedness

#resonanzcapital Crowdedness refers to the decreasing payoff that occurs when a large number of portfolios are exposed to a particular strategy or beta factor. The concept of crowdedness can be seen as a source of either wisdom or stupidity and thus risk.

In the coming weeks, we will be sharing a collection of blog articles discussing the subject of risk factor crowdedness in hedge funds.

In this first post, we explain what hedge fund factor crowdedness is, why investors should monitor it and how to measure it.

Read the full article >> here.