Who are the best hedge fund stock pickers in the world?

Posted by

The team at Alpha Attribution has done a massive study in which it looked at the stock selection prowess of the entire hedge fund universe to determine who’s really earning that 2-and-20, independent of the broader indices. It’s a really interest idea:

Stock picking starts with honesty. Let’s say you are a hedge fund manager and you held GOOG stock for a quarter. If GOOG goes up 10%, that is great, but if the technology sector goes up 7%, much of that 10% return may have been coming from the sector. You got the sector right, which is worth 7%, but your stock selection ability is only worth 3% (10%-7%). We define stock selection skill is one’s ability to pick a security that outperforms its sector (with some adjustments for beta, etc).

We use this framework to calculate the stock selection skill of every hedge fund manager that publicly discloses their positions. Based on the magnitude and consistency of this skill over the last 3 years, we rank order the entire hedge fund universe and produce a list of 10 hedge funds we think demonstrate high and consistent stock selection skill over the past 3 years.

Top Managers Demonstrating Consistent Stock Selection Skill over Last 3 Years


Screen Shot 2014-09-08 at 9.43.12 AM

Josh here – Industry people are likely to have heard of a couple of these funds, but the masses have probably not. In my opinion, this has a lot to do with the fact that the bigger a fund gets, the harder it is for them to suss out big enough opportunities to generate pure alpha. Lots of the big guys have been coasting on the relentless nature of the current bull market – not that there’s anything wrong with that. The bill collectors don’t ask you whether or not alpha or beta were involved when you send in the check.

Head over for more details:

Which Hedge Funds are Most Skilled at Picking Stocks? (Alpha Attribution)

 

This content, which contains security-related opinions and/or information, is provided for informational purposes only and should not be relied upon in any manner as professional advice, or an endorsement of any practices, products or services. There can be no guarantees or assurances that the views expressed here will be applicable for any particular facts or circumstances, and should not be relied upon in any manner. You should consult your own advisers as to legal, business, tax, and other related matters concerning any investment.

The commentary in this “post” (including any related blog, podcasts, videos, and social media) reflects the personal opinions, viewpoints, and analyses of the Ritholtz Wealth Management employees providing such comments, and should not be regarded the views of Ritholtz Wealth Management LLC. or its respective affiliates or as a description of advisory services provided by Ritholtz Wealth Management or performance returns of any Ritholtz Wealth Management Investments client.

References to any securities or digital assets, or performance data, are for illustrative purposes only and do not constitute an investment recommendation or offer to provide investment advisory services. Charts and graphs provided within are for informational purposes solely and should not be relied upon when making any investment decision. Past performance is not indicative of future results. The content speaks only as of the date indicated. Any projections, estimates, forecasts, targets, prospects, and/or opinions expressed in these materials are subject to change without notice and may differ or be contrary to opinions expressed by others.

Wealthcast Media, an affiliate of Ritholtz Wealth Management, receives payment from various entities for advertisements in affiliated podcasts, blogs and emails. Inclusion of such advertisements does not constitute or imply endorsement, sponsorship or recommendation thereof, or any affiliation therewith, by the Content Creator or by Ritholtz Wealth Management or any of its employees. Investments in securities involve the risk of loss. For additional advertisement disclaimers see here: https://www.ritholtzwealth.com/advertising-disclaimers

Please see disclosures here.

What's been said:

Discussions found on the web
  1. free keyword rank checker commented on Aug 05

    … [Trackback]

    […] Read More on|Read More|Read More Infos here|Here you can find 72880 more Infos|Informations on that Topic: thereformedbroker.com/2014/09/08/who-are-the-best-hedge-fund-stock-pickers-in-the-world/ […]

  2. instakram orospulari commented on Aug 06

    … [Trackback]

    […] Find More on|Find More|Read More Infos here|Here you can find 12319 more Infos|Infos to that Topic: thereformedbroker.com/2014/09/08/who-are-the-best-hedge-fund-stock-pickers-in-the-world/ […]

  3. thirukadaiyur commented on Aug 08

    … [Trackback]

    […] Find More here|Find More|Read More Informations here|There you will find 11635 more Informations|Infos to that Topic: thereformedbroker.com/2014/09/08/who-are-the-best-hedge-fund-stock-pickers-in-the-world/ […]

  4. cc dumps commented on Aug 08

    … [Trackback]

    […] Read More on|Read More|Find More Informations here|There you can find 88870 additional Informations|Informations on that Topic: thereformedbroker.com/2014/09/08/who-are-the-best-hedge-fund-stock-pickers-in-the-world/ […]

  5. basic information commented on Aug 09

    … [Trackback]

    […] Find More on|Find More|Find More Infos here|There you will find 33567 more Infos|Informations to that Topic: thereformedbroker.com/2014/09/08/who-are-the-best-hedge-fund-stock-pickers-in-the-world/ […]

  6. terms commented on Aug 09

    … [Trackback]

    […] Read More here|Read More|Find More Informations here|There you can find 99202 additional Informations|Informations on that Topic: thereformedbroker.com/2014/09/08/who-are-the-best-hedge-fund-stock-pickers-in-the-world/ […]

  7. Pune Call Girls commented on Aug 12

    … [Trackback]

    […] Find More on|Find More|Read More Informations here|Here you will find 37189 more Informations|Infos to that Topic: thereformedbroker.com/2014/09/08/who-are-the-best-hedge-fund-stock-pickers-in-the-world/ […]

  8. The best face cream commented on Aug 13

    … [Trackback]

    […] Find More here|Find More|Read More Infos here|Here you can find 48565 additional Infos|Informations to that Topic: thereformedbroker.com/2014/09/08/who-are-the-best-hedge-fund-stock-pickers-in-the-world/ […]

  9. PK Studies in mouse commented on Aug 13

    … [Trackback]

    […] Find More on|Find More|Find More Infos here|There you can find 87256 more Infos|Informations on that Topic: thereformedbroker.com/2014/09/08/who-are-the-best-hedge-fund-stock-pickers-in-the-world/ […]

  10. HrHak commented on Aug 14

    … [Trackback]

    […] Find More here|Find More|Find More Infos here|Here you will find 28391 more Infos|Infos to that Topic: thereformedbroker.com/2014/09/08/who-are-the-best-hedge-fund-stock-pickers-in-the-world/ […]

  11. buy drostanolone propionate commented on Aug 16

    … [Trackback]

    […] Read More here|Read More|Find More Informations here|There you can find 24660 additional Informations|Infos to that Topic: thereformedbroker.com/2014/09/08/who-are-the-best-hedge-fund-stock-pickers-in-the-world/ […]

  12. snap frames warehouse commented on Aug 19

    … [Trackback]

    […] Read More here|Read More|Read More Informations here|Here you will find 67021 more Informations|Infos on that Topic: thereformedbroker.com/2014/09/08/who-are-the-best-hedge-fund-stock-pickers-in-the-world/ […]

  13. emergency glazing service peterborough commented on Aug 20

    … [Trackback]

    […] Find More here|Find More|Read More Informations here|Here you will find 71402 additional Informations|Infos on that Topic: thereformedbroker.com/2014/09/08/who-are-the-best-hedge-fund-stock-pickers-in-the-world/ […]

  14. bgo mobile casino bonus commented on Aug 22

    … [Trackback]

    […] Find More on|Find More|Find More Infos here|Here you can find 62767 additional Infos|Infos on that Topic: thereformedbroker.com/2014/09/08/who-are-the-best-hedge-fund-stock-pickers-in-the-world/ […]

  15. porsche Greensboro commented on Aug 25

    … [Trackback]

    […] Find More on|Find More|Read More Informations here|There you can find 84298 more Informations|Infos on that Topic: thereformedbroker.com/2014/09/08/who-are-the-best-hedge-fund-stock-pickers-in-the-world/ […]

HowIInvestMyMoney