• Smart Beta: Hedging your Hedge Fund Crowding Exposure
  • Crowded hedge fund trades have historically presented a source of alpha. This crowding factor, while generating alpha, has seen steep drawdowns recently
  • Traditional attempts to hedge exposure to crowded hedge fund trades have proven insufficient
  • The Symmetric Stress Factor provides a behavioral driven alternative to capture and hedge the decision-making process that is associated with the crowding-related drawdowns