UBS: Here are the 9 most crowded stocks
Mario Tama/Getty
After all, they're the ones still investing based on such factors as fundamentals and valuations, while their price-insensitive computerized counterparts operate off highly-tuned algorithms.
And following the herd can really pay off when the market is flourishing. The more people that pile into a stock during an up-market, the further its share price will climb.
It's a momentum-driven strategy that looks simple on the surface, but can backfire in spectacular fashion at the first sign of turbulence. The more crowded a trade, the more painful the fall as investors rush to the exit simultaneously, spurring a vicious unwind.
With all of that considered, UBS has compiled a list of the nine stocks most crowded with active managers. In order to do so, the firm created an active trading portfolio, calculating weights for each company. It then compared those to benchmark index weightings, and ranked the stocks with the highest excess active share.
Here's a list of the nine stocks identified by UBS as of June 23, arranged in descending order of global active weighting:
- A centenarian who starts her day with gentle exercise and loves walks shares 5 longevity tips, including staying single
- A couple accidentally shipped their cat in an Amazon return package. It arrived safely 6 days later, hundreds of miles away.
- FSSAI in process of collecting pan-India samples of Nestle's Cerelac baby cereals: CEO
- 7 Nutritious and flavourful tiffin ideas to pack for school
- India's e-commerce market set to skyrocket as the country's digital economy surges to USD 1 Trillion by 2030
- Top 5 places to visit near Rishikesh
- Indian economy remains in bright spot: Ministry of Finance
- A surprise visit: Tesla CEO Elon Musk heads to China after deferring India visit