Hedge Funds Move Back Into Momentum Stocks

The video discusses the resurgence of momentum strategy in hedge funds, despite its poor performance earlier in the year. It highlights the challenges hedge funds face in balancing momentum and value stocks, given the current market conditions. The discussion also touches on the limitations of 13F filings in revealing hedge fund strategies and the ongoing search for alpha in a low-growth environment. The video concludes with an analysis of the potential future of momentum investing.

What is a key characteristic of momentum stocks?

• They have decreased in value over the past year.

• They have increased in value over the past year.

• They have no significant change in value over the past year.

• They have remained stable in value over the past year.

What is a limitation of 13F filings in understanding hedge fund strategies?

• They provide detailed insights into hedge fund strategies.

• They only show what hedge funds have bought.

• They show both buying and selling activities.

• They only show what hedge funds have sold.

How are hedge funds currently positioned in relation to value stocks?

• They are heavily invested in value stocks.

• They are moderately invested in value stocks.

• They are positioned far from value stocks.

• They have no interest in value stocks.

Why might hedge funds be focusing on momentum investing despite its challenges?

• Because value stocks are performing exceptionally well.

• Because growth rates are low and traditional strategies are not working well.

• Because traditional strategies are yielding high returns.

• Because growth rates are high.

What is a potential reason for hedge funds' interest in stocks like Facebook and Amazon?

• They have been consistently increasing in value.

• They have become more affordable after a sell-off.

• They are considered defensive stocks.

• They are unrelated to momentum investing.