As we enter into Q2 2020 earnings season, we wanted to revisit the Hedge Fund Concentration topic and highlight key crowded names across the major US sectors.
Using Wolfe Research’s data, we can see how this factor has performed over time. This is what cumulative return has looked like for HF Concentration over the past 12 months:
Q2 2020 - Most Crowded Names Across Key US Sectors
Using Omega Point’s Security Search tool, we can find the most crowded names in the Russell 3000 universe that have significant idiosyncratic risk, with the following criteria:
And below we highlight the most crowded names in each sector (capped at 5) that have not yet reported earnings for Q1 2020.
The above list includes coronavirus vaccine makers, hand sanitizer companies, oil shipping, and transportation companies. If you have meaningful exposure to any these companies, we would be happy discussing with you possibilities to hedge out the crowding risks associated with them ahead of their earnings calls.
US & Global Market Summary
US Market: 4/24/20 - 4/30/20
Factor Update: Axioma US Equity Risk Model (AXUS4-MH)
Factor Update: Axioma Worldwide Equity Risk Model (AXWW4-MH)
Please let us know if you’d like to better understand and manage your exposure to any of the factors that we’ve discussed.