Reported about 9 hours ago
The dispersion trade, a favored strategy among hedge funds on Wall Street, has seen some investors betting against it as the US equity market experiences an unusual calm despite volatility in individual stock prices. Hedge funds are capitalizing on stable conditions to bet on varied stock movements, leading to crowded trades. However, some funds like QVR Advisors are opting for the opposite strategy, focusing on long index volatility and shorting single-name volatility, despite the inherent risks. This contrarian approach has sparked debate among investors about the timing and viability of such moves.
Source: YAHOO